Course Title

BEG 492 MS
Construction Project Management
“ There is no any
underdeveloped country in the
world, they are under
managed countries”

by: Peter Drucker

1.1Construction management as a
Discipline
● Construction is a process of the building of infrastructure.
● Construction project is related with the construction of infrastructure
within the budget, time and quality.
● Essential planning and execution is required for the construction
project.
 Sources of projects
● Government organizations
● Private sectors [Private investors]
● International non-government organizations (INGOs)
● Non-government organizations (NGOs)
● Public + private partnership (JV)
● Bio-lateral project
● Multi-lateral project
Traditional techniques / methods
● Bar chart
● Developed by Henry Gantt (1919)
● Gantt chart
● Two axis
● Horizontal (time)

● Vertical (activities)

● Limitations
● Not showing the interdependencies

● Not showing critical path / critical activities

● Not showing actual progress

● Not showing the resources

● Not suitable for big / large projects

● Milestone chart
● Modified bar chart
● Shows major activities / events
● Indicated by the circle / square on the chart
● Line of Balance
Modern techniques / methods
● Networking model
● CPM
● Developed by US Engineer, working at DuPoint Company (1956),
construction of chemical plant
● Completed the project successfully by reducing 30 % of the project
duration
● Since then, widely spread over the world
● Used in construction and other industry project.
● PERT
● Developed by US Navy Engineers, working on large military
development programs, specially on its Polarish Weapon System in
1958.
● Successfully completed the weapon system project with the help of
management consulting firm of Booz, Allen and Hamilton.
● Since then, widely spread all over the world, specially in research and
development projects.
Others…
● In 1956, American Association of Cost Engineers (now AACE
International; Association for the advancement of Cost
Engineering) was formed.
● AACE has continued its pioneering work and in 2006 released the
first ever integrated process for portfolio, program & project
management (Total Cost Management Framework).
● In 1969,Project Management Institute(PMI) was formed to serve
the interest of project management industry popular from software
industry to construction industry.
● Later on 1981,PMI Board of Directors authorized the development
of what has become “A Guide to the Project Management Body of
Knowledge (PMBOK Guide).
Contd…
● International Project Management Association (IPMA), founded in
Europe in 1967 undergone development and instituted IPMA
Competence Baseline(ICB).
● Both the organization are now participating in development of an
ISO project management standard.
● Construction management is a diverse discipline focused on the
delivery of projects that composes the worlds built environment;
included are the determination of project requirements,
management of design, procurement of materials and management
of construction project within the cost, time and design parameters.
Context of Construction
Management
● Construction management is the study of how project are conceived,
designed and built; the types of materials and methods used;
techniques for estimating the cost of construction; design and contract
law; construction accounting; oral and written communication; safety
requirements; project planning and project management.
● Includes science of construction, construction management and
technology in construction.
● Construction management also refers to business representation.
Construction Participants
● Government organizations
● Private sectors [Private investors]
● Public + private partnership (JV)
● Construction management consult firms
● Architect engineering associates
● Construction manpower recruitment and training agencies
● Construction materials developing, manufacturing, transportation
and trading firms
● Construction plant and machinery ,maintenance organization
● Banking and financial institution
● Risk Insurance and Legal services companies
● Contractors and contracting firms,etc
Construction Team/Parties
Construction Team/Parties
The Client
⚫ Client is also an employer of the construction project. Client may be owner,
occupier, developer, implementing agencies etc. Client may be
governmental department, ministry, a public corporation, private limited,
NGOs, INGOs, an individual etc.
⚫ This is the people (or groups) that are the direct beneficiaries of a project or
service. They are the people for whom the project is being undertaken.
(Indirect beneficiaries are probably stakeholders.) These might also be
called "customers“.
Role of Client
Client possess following roles and responsibilities in construction projects:
⚫ Offer the project through tender notice
⚫ Signs the letter of Acceptance.
⚫ Prepares the contract agreement
⚫ Approves the performance security.
⚫ Ensures insurance is in accordance with the laws
⚫ The Employer makes the advance payment (if any)
⚫ Authorizes the Contractor to move on to the site.
⚫ Makes payments (as per running bills) of the Contractor as certified
⚫ May authorize work to be completed by others if the contractor is in default.
⚫ The Employer can terminate the contract in the event of the contractor
The Consultant/Engineer
● An individual engineer/architect, an independent
professional organization, practicing consulting firm,
a government entity
The Role of Consultant
⚫ Executes the works taking full responsibility of quality, timely completion
and safety of the work.
⚫ He / She will set out the work, construct the work, carryout tests, care of
works, rectify the defects, insure for the workmen, work and materials,
insure the equipment, insure for third part liabilities, take responsibility for
the health and safety of the worker, maintain specification, complete the
work, conduct tests on work and hand over the project.
⚫ After handing over, the Contractor is also responsible for maintenance of
defects during defects liability period.
The Contractor
Contractor is a person, firm or agency who undertake to execute the
work/project on the basis of agreed rates of payment & in accordance
with the terms & conditions of contract agreement
Role of Contractor
⚫ Design, research and investigation for design
⚫ Prepare cost estimates at different stages
⚫ Help client in preparation of Bid documents
⚫ Help client in contractor selection procedures
⚫ Quality, cost and time controlling
⚫ Supervise the works of contractor
⚫ Reporting to the client
⚫ Works as a client's representative, agent
⚫ Acts as arbitrator
⚫ Approval for the bills and guide the client for payment
Components of Constructio
Management
● Physical Space
● Construction Materials
● Machines, Equipment and Tools
● Human Resources
● Finance
Necessity of Construction
Management
● To reduce construction cost (by adopting new techniques of
construction & supervision)
● To check the wastage of materials and labors
● To arrange the completion of the wok in the minimum possible time
duration
● To improve the quality and speed of work by adopting modern
equipment and macheneries
● To have proper coordination between different agencies
(stakeholders involved in construction project.
Characteristic of Construction
industry
● Construction is everlasting activity in the globe.
● Construction industry is one of the main contributor to the growth of
economy of a country that plans, design, constructs, maintain,
alters and repairs, physical immobile structures & facilities like
building, transportation networks, processing plants, power plant,
ports & harbors, water supply & sewerage, etc.
● Construction industry wide variety of works spread over in different
regions.
Construction industry possesses following characteristics:
❖ Involvement of many parties in delivering products
❖ Design, construction and maintenance are undertaken by different parties
❖ The products are long lasting and require routine maintenance
Contd…
❖ Difficult to deliver a product because it involves huge amount of
information processing, disputes, ambiguities, therefore require
thorough management.
❖ Construction product are always initiated by clients, opposite to
most of industries.
Classification of construction
industry
Depending upon nature of construction facility:
1. Building or Light construction
▪ Residential building
▪ Commercial complexes
▪ Educational & Recreational facilities
▪ Hospitals & Hotels
▪ Estates & Offices
▪ Warehouse & Shelters, etc
▪ Mostly designed by Architect-Engineering Firms ,financed by
Government, public & private sectors.
Contd,,
2. Infrastructure Construction projects:
● Dam& canals
● Highways & Airports
● Railways & Bridges
● Oil/Gases pipelines & transmission lines
● Large water supply & sewage disposal
● Nuclear & thermal power plant
● Other specialist construction activities
● Designed by specialist engineering firm
Contd..
3. Industrial construction projects
● Construction of power generation
● Manufacturing, processing & industrial plants like steel mills, petroleum
refineries, consumer goods factories, industrial works, utility services &
human needs facilities.
● Involve heavy investment & are highly specialized engineering.

4. Special purposeconstruction related project

● Includes environmental works, emergencies, remedial works, installation
& commissioning of equipment & Complex key operations.
Domestic and Global Construction
Market
The first engineering structure to be built in Nepal were
● Iron bridge over river Bagmati in 1850
● Public water supply system laid in Kathmandu Valley during
1888-1895,Royal Palace, Clock Tower & Suspension bridgewere
built during these years
● Hydro-electric project at Pharping completed in 1911
● Amlekh-ganj Railway line by M/s Martin & Co. Ltd of Calcutta
● Dhursingh-Mataritha Ropeway by M/s Keyner Son and Co. of
London in 1926-1927
● New age of Nepalese construction industry started only after 1951.
● In 1956,Five year development plan were started
● In 1957, industrial resolution adopted by GoN &declared
Contd..
● Industrial Enterprises Act in 1974,which defined Contractor,& all
construction firms must register themselves in Ministry of Works
and Transport in class A,B,C contractor depending on technical
man-power, value turnover, machinery & liquid assets.
● Construction project handled by Nepalese contractors are
Siddhartha Highway, Trishuli hydro power, East –west Highway.
● Since construction act hadnot come in existence in panchayat
sytem,so cannot develop so much.
● After restoration of parliamentary democracy in 1989,Nepalese
contractor got favourable condition to develop their capacity & got
opputunities to take part in several construction project.
Infrastructure Domestic Market
1. Roads & Airports
2. Irrigation & Hydropower
3. Real State and Housing
4. Public Private Partnership in infrastructure development
● Build & Transfer(BT)
● Build, Operate & Transfer (BOT)
● Build, Operate, Own & Transfer (BOOT)
● Build Transfer & Operate
● Lease,Operate & Transfer
● Develop,Operate & Transfer
Examples:Bus terminals,Cable car & ropeway,City
International Export Market
● More than 220 top international companies are competing with
eachother for global construction tenders.
● Americans are in front of all construction companies
● Building, transportation & petroleum activities have major scope of
work in international market.