Introduction to

Engineering
Management
CEC 001 | Project Construction & Management
Introduction
The course aims to develop the students’ specialized
engineering technical knowledge in project management and
introduce resource, financial, and time management in the
construction industry.
Effective management of a project also requires a considerable
background of general knowledge about the construction
industry.
Introduction
Learning objectives for this lecture include:
✓Recognize the size and impact of the construction industry.
✓Understand how a construction project moves from concept
to reality.
✓Identify entities involved in a construction project and various
project delivery systems that link the participating entities.
✓Introduce the role of the project manager.
No other industry has a bigger
impact on the human The
condition than the Construction
construction industry. Industry
Pyramids
Ancient Egypt
Brooklyn Bridge
New York City
Panama Canal
Panama
Hoover Dam
Nevada
Burj Khalifa
Dubai
Zuellig Building
Makati
Philippine Arena
Bulacan
The Construction Industry
Not only does the construction industry touch the lives of
virtually every human being on a daily basis; it also occupies a
fundamental position in many national economies.
The Construction Industry
The construction industry is heterogeneous and enormously
complex.
There are several major classifications of construction that
differ markedly from one another:
o Heavy Engineering Construction
o Industrial Construction
o Building Construction
• Institutional
• Residential
Heavy Engineering
Construction
Large scale with high degree of
mechanization
Long construction periods
o Dams
o Tunnels
o Bridges
o Highways
o Airports
o Pipelines
o Ports
Industrial
Construction
Large scale with high degree of
technological complexity
Capital intensive and long construction
periods
o Petroleum Refineries
o Petrochemical Plants
o Synthetic Fuel Plants
o Nuclear Power Plants
o Steel Mills
o Manufacturing Plants
Building Construction:
Institutional
Greater cost and sophistication than
residential
Projects are limited to few contractors
o Commercial Offices
o Schools
o Government Buildings
o Malls
o Hotels
o Hospitals
o Recreation Centers
o Warehouses
Building Construction:
Residential
Highly competitive
High risk and high reward
Contractors can be informal
o Condominiums
o Houses
o Townhouses
o Apartments
The Construction Industry
In addition, these construction types are further divided into
many specialties, such as electrical, concrete, excavation, piping,
and roofing.
The Construction Industry
Construction work is accomplished by contractors who vary
widely in terms of size and specialty.
Some contractors choose to concentrate on a particular task or
aspect of the construction project and are therefore referred to
as specialty contractors.
Others assume broader responsibility for a comprehensive work
package and are referred to as general contractors.
Commonly, general contractors will subcontract specific aspects
of a project to specialty contractors, forming a contractual web
of general contractors and specialty contractors.
The Construction Project
Construction projects are intricate,
time‐consuming undertakings. The total
development of a project normally
consists of several phases requiring a
diverse range of specialized services.
In progressing from initial planning to
project completion, the typical job
passes through successive and distinct
stages that demand input from such
disparate areas as financial
organizations, governmental agencies,
engineers, architects, lawyers, insurance
and surety companies, contractors,
material and equipment manufacturers,
and suppliers, and construction craft
workers.
The Construction Project
To a great extent, each construction project is unique—no two
jobs are ever exactly the same.
In its specifics, each structure is tailored to suit its environment,
arranged to perform its own particular function, and designed
to reflect personal tastes and preferences.
The Construction Project
Construction is subject to the influence of highly variable and
sometimes unpredictable factors. The construction team, which
includes architects, engineers, craft workers, specialty
contractors, material suppliers, and others, changes from one
job to the next.
All the complexities inherent in different construction sites—
such as subsoil conditions, surface topography, weather,
transportation, material supply, utilities, and services, local
specialty contractors, labor conditions, and available
technologies—are an innate part of the construction.
The Construction Project
However, though construction projects are subject to infinite
variety, construction processes tend to be consistent from job to
job.
✓Each job goes through mobilization and closeout processes.
✓All materials and installed equipment are subject to a
procurement process that includes submittals, approvals,
purchases, and shipments to the job site.
✓Contracts are negotiated.
✓Costs are estimated and billed out when a component is
completed.
✓Changes happen regularly, but even changes are handled
through a consistent change order process.
Project Stages:
Planning and Definition
Once an owner has identified the
need for a new facility, he or she must
define the requirements and
delineate the budgetary constraints.
Project definition involves
establishing broad project
characteristics, such as location,
performance criteria, size,
configuration, layout, equipment,
services, and other owner
requirements needed to establish the
general aspects of the project.
Project Stages:
Planning and Definition
Conceptual planning stops short of
detailed design, although a
considerable amount of preliminary
architectural or engineering work
may be required.
The definition of the work is basically
the responsibility of the owner,
although a design professional may
be called in to provide technical
assistance and advice.
Project Stages:
Design
The design phase involves the
architectural and engineering design of
the entire project. It culminates in the
preparation of final working drawings
and specifications for the total
construction program.
In practice, design, procurement, and
construction often overlap, with
procurement and construction
beginning on certain segments as soon
as the design is completed, and
drawings and specifications become
available for those segments.
Project Stages:
Design
With the advent of high‐speed
computing and massive data
management capabilities, the various
design components can now be
incorporated into a single database
producing integrated design in a digital
format.
Production information is being added
to the database, resulting in a Building
Information Modeling (BIM) model of
the project that contains all information
on the project in a unique digital format.
The use of BIM is still in the early stages,
but its use is evolving rapidly throughout
the construction industry.
Project Stages:
Procurement and
Construction
Procurement refers to the ordering,
expediting, and delivering of key project
equipment and materials, especially
those that may involve long delivery
periods. This function may or may not
be handled separately from the
construction process itself.
Construction is, of course, the process of
physically erecting the project and
putting the materials and equipment
into place, and this involves providing
the manpower, construction equipment,
materials, supplies, supervision, and
management necessary to accomplish
the work.
Project Stages:
Procurement and
Construction
This stage moves toward conclusion
with substantial completion of the
project when the owner gains beneficial
use of the facility.
The conclusion of the project occurs
when the terms of all contracts are
fulfilled, and the contracts are closed
out.
How easily do you remember people’s name and faces
after meeting them only once?
1. I am terrible with names
2. I remember faces, but not names
3. Very easily
How many
differences
can you see?
1.
2.
3.
I tend to notice when people make small changes to
their appearance such as clothing choices, hairstyles,
etc.
1. False
2. Somewhat True
3. True
Are you able to recognize where
different accents come from?
1. Not really. They all sound the same
to me.
2. Usually I can, but sometimes it’s
unclear.
3. I can always tell where someone is
from if I hear their accent.
What was the color of the text in the last picture?
1. White
2. Blue
3. Yellow
When you walk into your home, do you immediately
notice if something has changed or out of place?
1. It usually takes me a while
2. It depends
3. Yes, I notice immediately
Do you remember random details that others may
have missed or forgotten?
1. Not particularly
2. Sometimes
3. All the time
Score
16 – 21 Detail-oriented (Local Thinker)
7 – 15 Big-picture (Global Thinker)
Levels of Management
o Construction Management (CM)
o Project Management (PM)
o Program Management (PGM)
Hierarchy of Responsibilities
Program
Management:
Delivering
Multiple Projects

Project Management:
Delivering All Phases of a Project

Construction Management:
Delivering the Construction and Closeout of a Project
Construction Management
Defining: The management and control of the construction
phase of a project

Purpose: Ensure all aspects of construction are executed for the

owner, safely, on time, within the budget, and confirming to all
standards and guidelines
Construction Management
Typical Responsibilities:
✓Quality Assurance and Quality ✓Document Control
Control
✓Change management
✓Environmental, Health, and
Safety ✓Contract Compliance

✓Cost management ✓Claims Avoidance

✓Schedule analysis
✓Inspections
Construction Management
Relationship with Owner: Agency CM:
o Professional services on behalf of the Owner
o Contract is with the Owner or the PM
o Contractors have contracts with the Owner
o Reports to the Owner or the PM
Construction Management
Relationship with Owner: CM-at-Risk:
o Responsible for performing the work
o Contract is with the Owner or the PM
o Sub contractors have contracts with the CM
o Reports to the Owner or the PM
Project Management
Defining: The management and control of a single project during
all phases of development

Purpose: Ensure all aspects of project delivery are executed for

the owner, safely, on time, within the budget, and conforming to
all standards and guidelines. This includes design, construction,
procurement, and closeout/turnover.
Project Management
Typical Responsibilities:
✓Track/monitor project ✓Design and constructability
schedule, funding, cost and review
budget
✓Scope creep review
✓Packaging and sequencing of
contracts ✓Contractor pre-qualification

✓Contracts interface review ✓Permitting / compliance

✓Contract submittal review

Project Management
Relationships:
o The Project Manager works directly with the Owner
o Sophistication of the Owner will drive which functions are
engaged (e.g., Procurement)
Program Management
Defining: The creation, planning, integration, coordination, and
oversight of a set of projects that contribute to the achievement
of an organization’s vision, strategic objectives, and desired
results.

Purpose: Allows for the top-down planning, management, and

coordination of projects in a rational and coherent way. Ensures
that overarching goals are met, value for investment is realized,
risks are minimized, and benefits maximized.
Program Management
Typical Responsibilities:
✓Oversight all aspects of ✓Broad stakeholder
project and construction engagement and management
management
✓Standards and guidelines for
safety, quality, procurement
and other areas
✓Program costs and schedule
✓Public information
Program Management
Relationships:
o The Program Manager normally works for the Owner
o Clients are typically governments/agencies with broad
national interest and objectives
o Often a capacity building role implied or specified.
PROGRAM MANAGER
PROJECT MANAGER
PROJECT MANAGER
 FACILITIES
MANAGER

PROJECT MANAGER
CONSTRUCTION MANAGER
Management during the
Design Phase
Project cost and time control actually begin very early in the
project with the project owner’s developing basic cost and time
requirements necessary to justify the project.
The design team respects the owner’s limits, constraining the
design, as it evolves, to meet the owner’s cost and time
boundaries.
Management during the
Design Phase
✓Estimates such as annual cost to the owner and total life‐cycle
costs of the facility are made.
✓Technical job standards are weighed against cost, function,
maintenance, and appearance with the objective of minimizing
the full cost of constructing, operating, and maintaining the
new facilities over their useful life.
Management during the
Design Phase
✓Construction methods and material alternatives are subjected
to value analysis as a rational means of optimizing the entire
construction process in terms of cost and time.
✓Cost budgets—ranging from preliminary to final—are
prepared as the design approaches completion.
Management during the
Design Phase
✓The delivery times of materials and project equipment are
checked.
✓Where long delivery periods are involved, the design is
changed, or procurement is initiated as soon as the design has
progressed sufficiently to allow detailed purchasing
specifications to be drawn.
✓Construction methods are chosen whose cost characteristics
are favorable and for which adequate labor and construction
equipment will be available as needed.
✓A preliminary project time schedule usually is prepared as the
design progresses.
Management of Field
Construction
The management of field construction customarily is done on an
individual project basis, with a project manager being made
responsible for all aspects of the construction.
A good working relationship with a variety of outside persons
and organizations, such as architects, engineers, owners,
subcontractors, material and equipment suppliers, labor unions,
and regulatory agencies, is an important part of guiding a job
through to its conclusion.
ENGR. ELIANDRE RUSSEL P. VISTAL
Faculty, Civil Engineering Department
College of Engineering and Architecture
Technological Institute of the Philippines-Quezon City Campus
938 Aurora Blvd., Cubao, Quezon City
[email protected]
+63975 825 1232