5.3 Construction management and project delivery

Construction management and project delivery are crucial aspects of real estate development. They involve coordinating various stakeholders, from architects to subcontractors, to bring a project to life. Different delivery methods like Design-Bid-Build and Design-Build offer unique advantages and challenges.

Effective construction management requires careful planning, risk assessment, and quality control. Project managers must balance cost, time, and quality while ensuring safety compliance. These skills are essential for successful real estate development, turning plans into tangible assets.

Stakeholders in Construction Management

Key Project Leaders and Managers

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• Construction managers oversee planning, coordination, and execution of construction projects from inception to completion
• Architects and engineers design the project, create detailed plans, and ensure compliance with building codes and regulations
• General contractors manage the overall construction process including hiring subcontractors, procuring materials, and overseeing daily on-site operations
• Project owners or developers initiate the project, provide funding, and make key decisions throughout the construction process

Specialized Professionals and Service Providers

• Subcontractors complete specific aspects of the project (electrical work, plumbing, HVAC installation)
• Building inspectors ensure construction adheres to local building codes, safety standards, and zoning regulations
• Suppliers and vendors provide materials, equipment, and services necessary for project completion (concrete suppliers, equipment rental companies)

Project Delivery Methods

Traditional and Collaborative Approaches

• Design-Bid-Build (DBB) involves separate contracts with designer and contractor, resulting in a linear process
  • Potential for conflicts between design and construction phases
  • Clear division of responsibilities
• Design-Build (DB) utilizes a single entity responsible for both design and construction
  • Reduces project duration and fosters collaboration between designers and builders
  • Streamlines communication and decision-making
• Integrated Project Delivery (IPD) emphasizes collaboration among all stakeholders from the outset
  • Often utilizes shared risk and reward contracts to align interests
  • Optimizes project outcomes through early involvement of key parties

Alternative Delivery Methods

• Construction Management at Risk (CMAR) introduces a construction manager early in the design phase
  • CM provides input on cost, schedule, and constructability
  • CM assumes risk of delivering the project within a guaranteed maximum price
• Public-Private Partnerships (P3) involve long-term agreements between public entities and private sector partners
  • Used for design, construction, financing, and operation of public infrastructure projects (toll roads, airports)
  • Allows for risk-sharing and leveraging private sector expertise

Impact of Delivery Method Selection

• Choice of project delivery method impacts risk allocation, project timeline, cost control, and owner involvement
• Factors to consider include project complexity, budget constraints, and desired level of owner control
• Each method has unique advantages and challenges (faster delivery with DB, more owner control with DBB)

Managing Construction Projects

Risk Management and Scheduling

• Risk management involves identifying, assessing, and prioritizing potential risks
  • Develop mitigation strategies and contingency plans for identified risks (weather delays, material shortages)
• Critical Path Method (CPM) scheduling identifies sequence of activities determining minimum project duration
  • Highlights potential bottlenecks and critical activities
  • Helps optimize resource allocation and project timeline

Cost Control and Change Management

• Value engineering optimizes cost-effectiveness without compromising function or quality
  • Systematic analysis of design alternatives (alternative materials, construction methods)
• Change order management processes control scope creep and manage unforeseen changes
  • Establish clear procedures for requesting, evaluating, and approving changes
• Cost estimating techniques establish realistic project budgets
  • Parametric estimating uses historical data to predict costs
  • Bottom-up estimating involves detailed analysis of individual components

Project Monitoring and Communication

• Earned Value Management (EVM) integrates project scope, schedule, and cost to measure and forecast performance
  • Calculates metrics such as Cost Performance Index (CPI) and Schedule Performance Index (SPI)
• Regular project status meetings and progress reports facilitate communication
  • Early identification of potential issues and bottlenecks
  • Keep stakeholders informed of project progress and challenges

Quality and Safety in Construction

Quality Control and Management

• Quality control programs ensure construction meets specified standards, codes, and project requirements
  • Systematic inspections and testing throughout construction process
• Total Quality Management (TQM) principles emphasize continuous improvement and stakeholder satisfaction
  • Involve all team members in quality improvement efforts
  • Focus on prevention rather than correction of defects

Safety Management and Compliance

• Construction safety management involves developing and implementing comprehensive safety plans
  • Prevent accidents and injuries on job sites through proactive measures
• OSHA regulations provide mandatory safety and health standards for the construction industry
  • Regular safety training programs and meetings maintain a safety-conscious workforce
  • Reduce accident rates through consistent enforcement of safety protocols

Technology and Environmental Considerations

• Building Information Modeling (BIM) identifies potential safety hazards and quality issues before construction begins
  • Virtual walkthroughs and clash detection improve design and construction coordination
• Environmental management plans address potential impacts during construction activities
  • Mitigate effects on air quality, water resources, and ecosystems (dust control measures, erosion prevention)