Construction Management: Principles & Practices
()
About this ebook
Most publications deal with just one or more aspects of construction management, such as scheduling or cost management, without providing an overall understanding of construction management in the construction industry.
This book is intended to fill this gap by providing an overview of all types of activities and subject matters required in managing a construction project. These items include but not limited to the various contract types, bidding process, change management, as well as contract negotiations. The various materials & testing and required permits are also discussed
The book follows a sequential arrangement of its chapters similar to the sequence of activities on a construction project. Author is an experienced practicing engineer and has managed several projects successfully. And hands on experience gained by the author have been added in the various chapters of this book. And that's what separates this book from other books on this subject.
This book can be useful to the teachers and students of Construction Management as well as to managers of financial institutions who finance construction projects. In addition, this book has enough material on offshore engineering to support a three semester hours’ worth credit course.
Related to Construction Management
Related ebooks
Field Guide for Construction Management: Management by Walking Around Rating: 5 out of 5 stars5/5How to Win and Manage Construction Projects Rating: 5 out of 5 stars5/5Managing Construction Projects Rating: 4 out of 5 stars4/5Design & Construction of the Contract Package Concept Rating: 0 out of 5 stars0 ratingsThe Master Construction Project Manager Rating: 5 out of 5 stars5/5Project Estimating and Cost Management Rating: 5 out of 5 stars5/5The Project Manager's Checklist for Building Projects: Delivery Strategies & Processes Rating: 0 out of 5 stars0 ratingsConstruction Site Planning and Logistical Operations: Site-Focused Management for Builders Rating: 0 out of 5 stars0 ratingsThe Certified Project Cost Manager Rating: 5 out of 5 stars5/5Integrated Project Planning and Construction Based on Results Rating: 0 out of 5 stars0 ratingsContractual Dimensions in Construction: A Commentary in a Nutshell Rating: 5 out of 5 stars5/5Becoming a Construction Manager Rating: 3 out of 5 stars3/5The Certified Scheduling Professional Rating: 5 out of 5 stars5/5Contracts, Biddings and Tender:Rule of Thumb Rating: 5 out of 5 stars5/5The Master Project Planner Rating: 5 out of 5 stars5/5Project Control Methods and Best Practices: Achieving Project Success Rating: 0 out of 5 stars0 ratingsGuide to Good Practice in the Management of Time in Complex Projects Rating: 0 out of 5 stars0 ratingsProject Management Crash Course Rating: 4 out of 5 stars4/5The Chartered Planning Engineer Rating: 5 out of 5 stars5/5Earned Value Project Management (Fourth Edition) Rating: 1 out of 5 stars1/5How to Estimate with RSMeans Data: Basic Skills for Building Construction Rating: 5 out of 5 stars5/5Project Management For Procurement Management Module Rating: 0 out of 5 stars0 ratingsHighway Construction and Inspection Fieldbook: Project Construction Management Book Rating: 0 out of 5 stars0 ratingsCost Management: In Easy Way Rating: 5 out of 5 stars5/5Build Your Home Q & A Rating: 0 out of 5 stars0 ratingsThe Certified Oil and Gas Project Manager Rating: 4 out of 5 stars4/5A Practical Guide to Disruption and Productivity Loss on Construction and Engineering Projects Rating: 5 out of 5 stars5/5Project Management – a Holistic Approach Rating: 0 out of 5 stars0 ratingsHome Buidling Q&A Rating: 4 out of 5 stars4/5
Construction For You
The Homeowner's DIY Guide to Electrical Wiring Rating: 5 out of 5 stars5/5Audel HVAC Fundamentals, Volume 3: Air Conditioning, Heat Pumps and Distribution Systems Rating: 5 out of 5 stars5/5Building Construction Technology: A Useful Guide - Part 1 Rating: 4 out of 5 stars4/5Welding for Beginners in Fabrication Rating: 4 out of 5 stars4/5The Complete Guide to Building Your Own Home and Saving Thousands on Your New House Rating: 5 out of 5 stars5/5The E-Myth Contractor: Why Most Contractors' Businesses Don't Work and What to Do About It Rating: 4 out of 5 stars4/5Estimating Construction Profitably: Developing a System for Residential Estimating Rating: 0 out of 5 stars0 ratingsThe Book of Basic Machines: The U.S. Navy Training Manual Rating: 4 out of 5 stars4/5HVAC Principles And Systems Rating: 5 out of 5 stars5/5The Art of Welding: Featuring Ryan Friedlinghaus of West Coast Customs Rating: 0 out of 5 stars0 ratingsMiller's Guide to Home Wiring Rating: 0 out of 5 stars0 ratingsThe Everything Woodworking Book: A Beginner's Guide To Creating Great Projects From Start To Finish Rating: 4 out of 5 stars4/5Audel Carpenter's and Builder's Layout, Foundation, and Framing Rating: 3 out of 5 stars3/5Audel Electrician's Pocket Manual Rating: 5 out of 5 stars5/5The Art of Welding: Practical Information and Useful Exercises for Oxyacetylene and Electric Arc Welding Rating: 0 out of 5 stars0 ratingsHow to Build a Tiny Portable House: With Plans and Instructions Rating: 4 out of 5 stars4/5Plumbing ABC's Rating: 5 out of 5 stars5/5Welding Tips & Tricks Rating: 0 out of 5 stars0 ratings'Ask The' Plumber? Rating: 0 out of 5 stars0 ratingsStarting Your Career as a Contractor: How to Build and Run a Construction Business Rating: 5 out of 5 stars5/5Complete Book of Framing: An Illustrated Guide for Residential Construction Rating: 4 out of 5 stars4/5Plumbing ~101~ Rating: 0 out of 5 stars0 ratingsThe Off Grid Solar Power Bible For Beginners Rating: 0 out of 5 stars0 ratings1,001 Questions & Answers for the CWI Exam: Welding Metallurgy and Visual Inspection Study Guide Rating: 4 out of 5 stars4/5Defensive Estimating: Protecting Your Profits Rating: 0 out of 5 stars0 ratingsAn Architect's Guide to Construction: Tales from the Trenches Book 1 Rating: 0 out of 5 stars0 ratingsAudel Practical Electricity Rating: 0 out of 5 stars0 ratingsTiny House Builder: How to Build a Simple Wooden House - Step By Step Guide With Over 100 Pictures and Plans Rating: 4 out of 5 stars4/5Welding for Off-Road Beginners: This Book Includes - Welding for Beginners in Fabrication & Off-Road Welding Rating: 5 out of 5 stars5/5
Reviews for Construction Management
0 ratings0 reviews
Book preview
Construction Management - Jagdish Suman
Construction Management Primer
Jagdish C Suman
A comprehensive treatment of Construction Management based on hands on experience, that encompasses all aspects of this vast subject & makes this book a useful text & reference book for students, teachers, and construction managers alike.
(Second Edition)
Dedicated
to
The Universal Builder
&
My Family — My Universe
Copyright
Copyright © 2021 Jagdish C Suman. All rights reserved.
Copyright Registration #: TXu 2-287-392
(Issued by United States Register of Copyrights and Director)
ISBN # 978-0-578-33757-9
Title: Construction Management Principles & Practices
Author: Jagdish C. Suman
Published by: Jagdish C Suman
(Second Edition)
Text Description automatically generatedPreface-1
This book is a result of many years of actual hands-on experience and has been written with the specific goal of helping students and practitioners of construction management. It is envisioned that it will also be useful to executives with general business or financial backgrounds to receive an introduction to the basics of construction management. And to help them appreciate the vast expanse of building an energy infrastructure onshore as well as offshore, from exploration, transportation to production and refining of hydrocarbons and petrochemical.
Construction management requires multidisciplinary technical expertise, combined with extraordinary patience and diplomacy, to successfully manage construction projects on time and under budget. The basic principles of construction management are applicable to all types of energy infrastructure. However, technical knowledge specific to the infrastructure project at hand will go a long way towards the successful completion of a project.
Most publications deal with one or more aspects of construction management, such as scheduling or cost management, without providing an overall understanding of construction management in the construction energy industry. This book is intended to fill this gap by providing an overview of all types of energy construction, the various contract types, bidding process, as well as contract negotiations. The book follows a sequential arrangement of its chapters similar to the sequence of activities on a construction project.
Specifics such Scheduling and Cost Management fall under the heading of Project Controls in the construction management field, but there are many other constituents of construction management, including Quality Control and Safety, which have been dealt with in this book as well.
Construction Management is performed by a team of experts headed by a Construction Manager. In oil and gas exploration, production, refining and petrochemical projects, the Construction Manager generally reports to a Project Manager or a Project Director.
Energy infrastructure projects are typically multi-million-dollar projects with large construction management organizations. Whether a project is built onshore or offshore adds an additional layer of complexity.
Generally, the construction industry infrastructure is divided into three types:
I. Industrial
1. Onshore (E&P facilities, refineries, petrochemical plants, etc.)
2. Offshore (oil and gas facilities, gathering systems, pipelines, etc.)
II. Commercial
1. Institutional
2. Business (hotels and apartments, high-rise buildings)5
III. Residential (single or multi-story)
IV. Infrastructure (Bridges, Tunnels & Shipping Terminals)
Regardless of the type of construction, the basics of construction management remain the same. However, offshore construction is very different from onshore construction in size, shape, construction techniques, materials, equipment, risks and especially the cost. Therefore, it is important to understand why it is so. And for this reason, the book has devoted several chapters identifying the various elements of offshore projects to impart this know-how:
Offshore platforms
Offshore pipelines
Shipping terminals
The most common principles/concepts of Construction Management are universally applicable to all type of projects onshore or offshore. These concepts are discussed in detail in the following chapters. This information should enable the reader to gain a basic understanding of construction management as it relates to energy infrastructure.
It is assumed in the book that we are dealing with a relatively large industrial project (e.g., offshore platform, power plant, petrochemical complex), which would require a fully staffed organization with all construction management specialties. Therefore, knowledge of the material provided in the book is a minimum requirement for a construction manager of such a large project. While the same construction management principles apply for smaller projects, some of these techniques would need customization to suit the size and type of a project, however.
Preface-2
This second edition contains several valuable changes, additions, and revisions in this book. Chapter-1 through Chapter-3 have been revised and several items added in them. The various construction equipment & Geotechnical information for site preparation and foundations have been added in Chapter-3. Chapter 5 through 19 have been thoroughly revised and several relevant information have been added to supplement the existing materials. Additional construction materials information has been added in Chapter 9. Chapter 10 (Project Execution) has been thoroughly revised and enlarged with all aspects of project execution processes included. Chapter 13 (Cost Management) has also been enhanced and revised to include such topics as estimate types & estimate basis, contingency, and escalations allowances, etc. Similarly, other chapters dealing with such diverse topics like negotiations and qualifications of successful negotiators; progress payments & their accuracy determination; the various ways to deal with conflicts, including litigations & arbitrations. These additions and revisions were based my own teaching experiences and by finding the inadequacies in the book to cover certain important topics. And fulfillment of these requirements has led to the addition of more than fifty pages in this new Edition (2) of this book, as compare with the first edition.
Any suggestion for improving the book would be very much appreciated
JC Suman
Houston, Texas, USA.
July 19, 2022
Acknowledgements
First of all, I am thankful to those who placed their trust in me and gave me opportunities to acquire relevant professional experience during my career. And now consequently, I am able to share this knowledge with the students of construction and construction management.
My thanks to the various industry experts and academicians, who were kind enough to give their time and valuable advice for improvements in this book. Special thanks to Professor Kris Asper, Dean of the Center of Excellence, Construction Engineering & Management Technology, Houston Community College, for his review of the manuscript and valuable advice.
Special thanks to Pramod Kulkarni, an accomplished editor with PennWell Publishing, who was kind enough to help edit the book into its first draft.
I am especially indebted to my daughters Sonia and Monica, for helping finalize and format the final manuscript of the book to meet the specific requirements of the publisher, as well as their valuable advice throughout the preparation of the book.
And finally, I am indebted to my beloved wife Anita, my energizer, and the backbone of the family; and my lovely children, Sonia, Monica and Kris, without whose encouragement and valuable contributions, this book would not have been possible. And how could I forget my grandkids, Sachin, Neha, Sapna & Dhyan, who maintained peace during the working sessions of this book
Table of Contents
Construction Management Primer
Dedicated
Copyright
Preface-1
Preface-2
Acknowledgements
CHAPTER 1
Introduction
PROJECT DEVELOPMENT STAGES
▪ Conceptual Phase
▪ FEED (Front End Engineering & Design)
▪ Detail Engineering
▪
Execution phase
MANAGEMENT ITEMS & TOOLS
When does the construction phase start?
CHAPTER 2
DEFINITIONS &TERMINOLOGY
▪ Construction Manager
▪ Budget
▪ Bid
Bid Types
▪ Contractor
▪ Contract
THE VARIOUS TYPES OF CONTRACTS
▪ Lump Sum
▪ Cost-Plus-Fee
▪ Guaranteed Maximum Price:
▪ Unit Price
▪ Lump Sum-Turnkey
▪ Engineering, Procurement, Construction and Management (EPCM)
▪ Engineering, Procurement, and Construction (EPC)
Project Controls
▪ Project Cost Controls
▪ Project Schedule Controls
▪ Health, Safety and Environment (HSE)
Quality Assurance & Quality Contro
▪ Risk
Stakeholders and Owner/Client
▪ Home Office
▪ Field Office
Temporary Facilities and Infrastructure
Management of Change (MOC)
▪ Shop Drawings
▪ As-Built Drawings
▪ Shop Inspection
▪ Logistics
▪ Occupational Safety and Health Administration (OSHA)
▪ Environmental Protection Agency (EPA)
▪ Progress Payment
▪ Change Orders
▪ NCR (NON-Conformance Report)
▪ Mechanical Completion
▪ Pre-Commissioning
▪ Commissioning
▪ Hand-Over Process
Chapter-3
Construction Types & Techniques
Based on Project Location:
Based on Usage of Facilities:
▪ Offshore Construction
▪ Offshore platforms
▪ Offshore pipelines
▪ Shipping-marine terminal structures
Construction Equipment
Onshore Construction
Major equipment
Small equipment:
Geotechnical information for site preparation & foundations
Chapter 4
Offshore Construction
▪ A. Offshore Platforms
▪ Concept Development
Types of Platforms
▪ Based on Engineering Design Concepts
▪ Based on Platform Support Configuration
▪ Based on Platform Use/Functionality
Anatomy of an Offshore Platform Structure
▪ Top Sides/Deck
▪ Jacket
▪ Foundation & Anchorage
▪ Concrete Jacket
▪ Single-leg Platform (Monopod)
▪ Tension leg platform (TLP)
▪ Spar Platforms
▪ 1. Conventional
Spar
▪ Compliant Towers
▪ Floating Production Systems
▪ Semi-submersible Platform
▪ Drill Ships
▪ Platform Anchorage/Foundation
▪ Pile Installation
PLATFORM- CONSTRUCTION & INSTALLATION
Fabrication & Transportation:
▪ Towing & Load-out
▪ Jacket In-Place Design
▪ Load-out
▪ Transportation (See fig.15)
▪ Topsides Installation
▪ Single-lift Method:
▪ Multi-Lift Method
▪ Float Over Method
Chapter 5
OFFSHORE PIPELINES
▪ Pipelines
Fabrication
▪ Pipe-in-Pipe
▪ Corrosion Protection
Installation of Offshore Pipelines
▪ Installation Techniques
▪ Reel-lay
▪ S-Lay
▪ J-Lay
Components of an Offshore Pipeline System
▪ Risers
▪ Pig Launchers and Receivers
▪ Mechanical Support Equipment
▪ Manifold Systems
Quality Control in Pipeline Fabrication
▪ Material Defects
▪ Corrosion
▪ Welding Issues
▪ Welding Defects & Failures
CHAPTER 6
OFFSHORE CONSTRUCTION
Ports, Marine Docks & Shipping Terminals
Main Components of a Terminal
▪ Super-Structure
▪ Vertical supports/piles
Generalized Anchor Mooring Systems.
Permanent Anchor Mooring Systems
▪ Pile moorings
▪ Travelling Mooring
▪ SPM (Single Point Mooring).
▪ Buoy
CALM (Catenary Anchor Leg Mooring)
SALM (Single Anchor Leg Mooring)
ALT (Articulate Loading Tower)
RMD (Ready Made Dolphin/Fixed Tower)
Anchor Types
Mushroom anchors
▪ Dead Weight:
▪ Pyramid anchors:
▪ Screw-in Anchors
Multiple Anchor mooring
Mooring Lines/Hawsers
Mooring line Material
Cargo Loading & Unloading Systems
Fire and Safety
Administrative and Operational Infrastructure and Facilities
Storage Facilities
Turning Basin
Chapter-7
Onshore Construction
Industrial Construction
Onshore Pipelines
▪ Pipeline Corridor
Commercial Construction
Residential Construction
Public Infrastructure
Chapter 8
Staging of Construction
I. Pre-Construction
II. Construction
III. Post Construction
Offshore Construction
Site Reconnaissance
▪ Support Facilities Identification:
Material Related Activities
▪ Welding
▪ Concrete
▪ Equipment Related Activities
▪ Approvals & Certifications
Onshore Construction
Project construction staging can be divided into three main sub-stages:
▪ Pre-Construction:
▪ Construction:
▪ Post Construction
▪ Site Related
▪ Material Related
▪ Equipment related
▪ Approvals & Certificates
▪ Site Related
▪ Support Facilities Identification
▪ Material Related Activities
Welding
▪ Concrete
▪ Equipment Related
▪ Approvals & Certifications
CHAPTER 9
CONSTRUTION MATERIALS
Testing & Certifications of Materials & Equipment
▪ Concrete
▪ Cement:
▪ Types of Cement
▪ Soft wood:
▪ Hard wood:
▪ Concrete
▪ Steel
▪ Equipment
CONCRETE TESTS
▪ SLUMP TEST
▪ Compressive Strength Test
▪ Water Permeability test
STEEL TESTS
▪ Tensile strength
▪ Buckling
▪ Fracture toughness
▪ Hardness
▪ Tensile Testing
▪ Reinforcing bars
▪ Buckling
▪ HARDNESS
Electrical & Mechanical Equipment
Vessels
CHAPTER 10
Project Execution
Project Execution Plan (PEP)
▪ SCOPE
▪ Scope Creep
Home Office Execution
▪ Constructability Input
Stick Built & Modular Construction
▪ Human Factor
Engineering
▪ Material & Equipment Availability
▪ Vendor Location and Capabilities Survey
Risk Identification, Assessment/Ranking & Mitigation
▪ Weather Window
▪ Equipment Availability
▪ Sparing Philosophy
▪ Long Lead Items
▪ Hazop & Hazid
Field Execution
Mobilization and De-mobilization
Temporary Infrastructure & Facilities
Warehousing & Storage
Preservation of Stored items
Construction/Assembly Phase
Electrical and Electronic Equipment
Mechanical Equipment
Maintenance Facilities
Field Office Set-ups
• Changes/modifications to original design
Field Engineering
Changes/Modifications to Original Design
Shop Drawings
As-Built Drawings
Permits
Permits from the Government/Public Authorities
Permits from the Site Management
▪ Hot Permits
▪ Cold Permits
Management of Change (MOC)
Quality Assurance and Quality Control (QA/QC)
Meeting Minutes
Vendor Communications
Engineering Calculations and Drawings
Vendor Fabrication
Field Testing and Start up Activities
Sub-Contract Administration
Vendor Management
Design criteria and specifications
Procurement Management
Contractor Management &Progress Payments
Accuracy of Progress Measurement
Earned Value Management
Negotiations
Desired qualities of a good negotiator:
▪ Patience
▪ Active Listening
▪ Emotional Control
▪ Verbal Communication
▪ Problem Solving
▪ Ethics and Reliability
▪ Eagerness Assessment and Control
▪ Firmness with flexibility
Managing Labor & Community Relations
Construction Disputes
Managing Disputes & Resolution Processes
▪ Adjudication.
▪ Mediation.
▪ Arbitration.
▪ Expert involvement and
▪ Court proceedings/litigation.
Adjudication
Expert Determination
Litigation
Mediation
Arbitration
Chapter 11
Communications
▪ Verbal communications
▪ Visual communications
▪ Written communications
▪ External (government & private entity permissions & certifications)
▪ Intra-PMT (Interface Management)
Verbal Communications
Visual Communications
Written Communications
▪ Meeting Minutes
▪ Drawings
▪ Specifications
▪ Contract Documents
▪ Progress Reports
▪ Change Orders/Deviations
▪ Management of Change
▪ Cost Reports
▪ Interface Management
Regulatory Compliance
▪ Organization Chart
Chapter 12
Mobilization to Construction Site
Facilities
▪ Lodging, Boarding & Transportation
▪ Infrastructure
▪ Power
Temporary Facilities
Permanent Facilities
▪ Infrastructure
▪ Temporary Infrastructure
▪ Permanent Infrastructure
▪ Power Supply
▪ Temporary Power
▪ Permanent Power Supply
▪ Entertainment Facilities
▪ Health Care Facilities
Chapter 13
Project Cost Management
▪ Project was finished within the projected schedule.
▪ Project was finished within the defined budget.
▪ Project met or exceeded the owner’s specifications & expectations
▪ Project was accomplished without any HSE violations.
Basis of Estimate (BOE)
▪ What is an Estimate?
Basis of Estimate (BOE)
▪ Cost Estimate Types
Cost Estimate-Categories
▪ Level of project definition/maturity,
▪ End usage of the estimate,
▪ Estimating methodology used, and
▪ Effort and time needed to prepare the estimate
▪ Project scope definition,
▪ Project specifications,
▪ Percentage of completeness of engineering
▪ Lessons learned from past projects,
▪ Risk identification and ranking
Cost Structuring
▪ Fixed costs
▪ Variable costs
▪ Direct costs
▪ Indirect costs
Labor Productivity
Field In-directs and Overheads
Owner’s Costs
Earned Value Management
Contingency & Allowances
Contingency
Allowances:
Allowances are extra money allocated for known items with unknown quantiles. For example, Design Allowance
; Material take-off Allowance, Price escalation allowance, etc. These allowances are generally delineated in the in the basis of estimate (BOE). It should be remembered that allowances are NOT a part of Contingency as discussed above.
▪ Design Allowances
▪ Material Takeoff Allowances
Chapter 14
Project Planning & Scheduling Management
Project Planning
Scheduling Process
Planning & Scheduling Terminology
▪ Level of Accuracy
▪ Milestones
▪ Critical Path
▪ Units of Measurement
▪ Organizational Procedures
▪ Control Threshold
Completion of Scheduling Process
Work Breakdown Structure
▪ Creating a Network Model
▪ Arranging WBS Activities
▪ Establish Activity Relationships
▪ Assigning Durations and Resources
▪ Early/Late Start & Finish
▪ Identifying Critical Path
Association for the Advancement of Cost Engineers – International
(AACE-International)
Chapter 15
Quality Assurance & Quality Control
"Quality assurance
Quality assurance
Quality Assurance
1. "Fit for purpose
Quality Control
Total Quality Management (TQM)
Six-Sigma
Construction QA/QC Plans
▪ Non-Conformance Report (NCR
General Construction Inspection & Verification Requirements
Project QA/QC Organization
Material Identification & Traceability Reports
Inspection & Testing Reports
Final Inspection
Contractor’s Submittals
▪ As-Built Drawings
Quality Control Program
Essential Elements of a QCP
Process
Pre-construction Activities of a QCP Program:
During Construction Activities (Construction Field QCP Program)
▪ Quality Assurance (QA) Process
▪ Closeout
▪ Post-Construction
▪ Attachments to the PQM Final Report
▪ Demobilization
Chapter 16
Health Safety & Environment
Regulatory Agencies
▪ Occupational Safety & Health Administration (OSHA)
▪ Environmental Protection Agency (EPA)
▪ Nuclear Regulatory Commission (NRC)
▪ Mining Safety & Health Administration (MSHA),
▪ Mineral Management Administration (MMA), etc.
▪ The PPE consists of:
LOGOUT-TAGOUT (LOTO)
OSHA standards for other industries such as Marine Terminals is 1917 Subpart C
, for Electrical Construction; is 1926 Subpart K
, Electric Power Transmission and Distribution is 1926 Subpart V
, and so on.
Chapter 17
Mechanical Completion &
Pre-commissioning
Chapter 18
Hook -up & Commissioning
Preparing for Commissioning
Main Commissioning Activities
Hydro-testing
▪ Flushing of Lines
Hook-up and Commissioning of Offshore Projects
▪ Constraints and Potential Problems
▪ Handover Process
▪ Start Up Process.
Chapter 19
Project Close out & Hand-Over of Facilities
Project Look-Back
Expectations versus Reality-Review
Project Close-out Report
Punch List
What is Included in the Project Closeout Process?
Chapter 20
Production Phase Tune-up
▪ Growth stage
▪ Maturity, and
▪ Decline
▪ All owners want to make sure that the project cost is recovered as soon as possible without incurring too much additional expenses.
Bibliography
Index
About the Author
CHAPTER 1
Introduction
Construction Management is a multi-disciplinary profession, requiring a unique blend of science, technology, and even liberal arts. Most construction management personnel come from engineering backgrounds, Civil Engineering in particular. However, in addition to a strong technical background, the Construction Management professional should be familiar with disciplines such as economics, sociology, psychology, law, and communications.
Typically, a Construction Manager oversees the overall Construction Project and heads a Construction Management organization. Depending upon the size and complexity of the project, the Construction Management organization includes several subject matter experts (SMEs), such as a cost engineer; scheduler; quality manager; safety engineer, and others. As the head of this organization, the Construction Manager is responsible for bringing the engineered design on drawings to a physical reality, such as a building, a bridge, or a power plant.
Many engineered objects around us (e.g., houses, cars, roads, bridges, buildings, airplanes, ships) as well as smaller devices such as watches, computers, and so on, have passed through four stages of evolution, before reaching the market. These stages/phases are¹:
PROJECT DEVELOPMENT STAGES
Conceptual Phase
This is the first stage of any project, wherein an idea is born out of necessity or strategic thinking by an individual or business to produce something to fill a gap in the market.
FEED (Front End Engineering & Design)
As this idea catches momentum based on the interest of management, engineers explore it further for its feasibility as a possible project by performing preliminary engineering and cost analysis.
Detail Engineering
Based on the FEED results, organization may end the project, or decide to proceed with the project to build it. In the later scenario, the next phase is Detail Engineering, wherein engineering is finalized, and drawings are prepared. And thereafter the project is awarded to a builder/contractor for construction.
Execution phase
(Detail engineering, fabrication, construction, commissioning & start up)
In the oil and gas industry, the Execution phase starts before the actual end of the Detail Design. This is when the Construction Management organization is established, and the contractor is selected for construction.
While all phases as stipulated above are equally important, construction part of the fourth phase is where the proverbial Rubber meets the Road
cliché’ applies. It is important to note that this is the phase where the initial thoughts/concepts are refined, and the engineering drawings and specifications are transformed into a physical reality.
Each of these four phases require precise planning and management of activities to
achieve successful completion before moving into the next phase. Additionally, planning and management required for Construction requires even more precision. The reason for this additional emphasis is that any mistakes made in first three
phases, although not accepted as routine, can be rectified on paper easily and with little impact on cost than fixing a construction mistake.
Construction phase mistakes can be as much as ten to several hundred times costlier as compared with those in other phases, especially in the offshore construction.
The following are a couple of real-life examples wherein construction mistakes ended up costing the owners millions of dollars to correct. Had these mistakes been identified during earlier phases, it would have cost a fraction of what it cost to fix these after the construction.
In first instance, a subsea pipeline design had assumed the gas to be transported via this offshore pipeline to be sweet
or containing no H2S gas. This was an erroneous assumption and ended up costing the company tens of million dollars to replace the pipeline with one that was suitable for transporting sour
gas containing traces of H2S gas.
In the second instance, the mistake was a result of faulty pipeline fabrication. Pipeline cladding installed inside the line-pipe separated, while the pipeline was in operation. Consequently, this pipeline corroded and had to be abandoned. A new pipeline system had to be installed, costing the company hundreds of million dollars. If the mistake had been caught during fabrication, the cost would have been perhaps one tenth of what it eventually cost to replace the pipeline.
All projects go through the same four phases of evolution, yet each project has a distinct set