Construction Management

Cover
Title Page
Copyright
About the Authors
Preface
Contents
Chapter 1 History and Basic Concepts
	1.1 Bridges and History
	1.2 The Historical Impact of Construction
	1.3 Great Captains of Construction
	1.4 Panama Canal
	1.5 Other Historic Projects
	1.6 Construction versus Manufacturing Processes
	1.7 Project Format
	1.8 Project Development
	1.9 Construction Technology and Construction Management
	1.10 Construction Management Is Resource Driven
	1.11 Construction Industry
	1.12 Structure of the Construction Industry
	1.13 Differing Approaches to Industry Breakdown
	1.14 Management Levels of Construction
	Review Questions and Exercises
Chapter 2 Preparing the Bid Package
	2.1 Project Concept and Need
	2.2 Establishing Need
	2.3 Formal Need Evaluation
	2.4 Conceptual Drawings and Estimates
	2.5 Preliminary and Detail Design
	2.6 Notice to Bidders
	2.7 Bid Package
	2.8 General Conditions
	2.9 Supplementary Conditions
	2.10 Technical Specifications
	2.11 Addenda
	2.12 Decision to Bid
	2.13 Prequalification
	2.14 Subcontractor and Vendor Quotations/Contracts
	2.15 Bid Bond
	2.16 Performance and Payments Bonds
	2.17 Cost and Requirements for Bonds
	Review Questions and Exercises
Chapter 3 Issues During Construction
	3.1 Acceptance Period/Withdrawal
	3.2 Award of Contract/Notice to Proceed
	3.3 Contract Agreement
	3.4 Time Extensions
	3.5 Change Orders
	3.6 Changed Conditions
	3.7 Value Engineering
	3.8 Suspension, Delay, or Interruption
	3.9 Liquidated Damages
	3.10 Progress Payments and Retainage
	3.11 Progress Reporting
	3.12 Acceptance and Final Payment
	3.13 Summary
	Review Questions and Exercises
Chapter 4 Contracts
	4.1 Contract Environment
	4.2 Process of Purchasing Construction
	4.3 Major Construction Contract Types
	4.4 Competitively Bid Contracts
	4.5 Stipulated-Sum Contracts
	4.6 Unit-Price Contracts
	4.7 Negotiated Contracts
	4.8 Project Delivery Methods
	4.9 Design-Build Contracts
	4.10 Design-Build in a Consortium Format
	4.11 Construction Management Contracts
	4.12 Construction Management At-Risk
	4.13 Comparing Project Delivery Methods
	Review Questions and Exercises
Chapter 5 Legal Structure
	5.1 Types of Organization
	5.2 Legal Business Forms
	5.3 Proprietorship
	5.4 Partnership
	5.5 Corporation
	5.6 Comparison of Legal Structures
	5.7 Joint Venturing
	Review Questions and Exercises
Chapter 6 Impact of Taxes
	6.1 Society and Taxation
	6.2 Business Impact of Taxation
	6.3 Why Taxes?
	6.4 Types of Taxes
	6.5 Income Tax Systems
	6.6 Taxation of Businesses
	6.7 Business Deductions in General
	6.8 Taxable Income: Individuals
	6.9 Itemized Deductions, Standard Deductions, and Personal Exemptions
	6.10 The Tax Significance of Depreciation
	6.11 Marginal Tax Rates
	6.12 Tax Credits
	6.13 Tax Payroll Withholding
	6.14 Tax Payment Schedules
	6.15 Marginal, Average, and Effective Tax Rates
	6.16 Summary
	Review Questions and Exercises
Chapter 7 Project Planning
	7.1 Introduction
	7.2 Work Breakdown Structure
	7.3 Developing the Work Breakdown Structure
	7.4 A Work Breakdown Example
	7.5 Work Packages for the Gas Station Project
	7.6 Determining Sequence of Work Packages
	7.7 Estimate Development and Cost Control Related to the Work Breakdown Structure
	7.8 Role of Code of Accounts
	7.9 Summary
	Review Questions and Exercises
Chapter 8 Project Scheduling
	8.1 Introduction
	8.2 Estimating Activity Durations
	8.3 Using Historic Productivity Data
	8.4 Bar Charts
		8.4.1 Description
	8.5 Scheduling Logic
	8.6 Scheduling Networks
	8.7 The Critical Path Method
	8.8 Forward Pass
	8.9 Backward Pass
	8.10 Activity Floats
	8.11 Working to Calendar Dates
	8.12 Example: Scheduling the Small Gas Station
	8.13 Summary
	Review Questions and Exercises
Chapter 9 Scheduling: Program Evaluation and Review Technique Networks and Linear Operations
	9.1 Introduction
	9.2 An Example Program Evaluation and Review Technique Network
	9.3 Program Evaluation and Review Technique Shortcomings
	9.4 Linear Construction Operations
	9.5 Production Curves
	9.6 Line of Balance
	9.7 Line of Balance Applied to Construction
	Review Questions and Exercises
Chapter 10 Resource-Related and Advanced Linear Scheduling Techniques
	10.1 Resource Scheduling
	10.2 Resource Allocation
	10.3 Resource Leveling
	10.4 Time–Cost Trade-off
	10.5 Linear and Repetitive Scheduling Techniques
	10.6 Linear Scheduling Method
	10.7 Case Study of a Linear Project
	Review Questions and Exercises
Chapter 11 The Mathematics of Money
	11.1 Introduction
	11.2 Time Value of Money
	11.3 Factors Determining the Time Value of Money
	11.4 Simple and Compound Interest
		11.4.1 Simple Interest
		11.4.2 Compound Interest
	11.5 Nominal and Effective Rate
	11.6 Equivalence and Minimum Attractive Rate of Return
	11.7 Discount Rate
	11.8 Sunk Costs
	11.9 Cash Flow Diagrams
	11.10 Annuities
	11.11 Conditions for Annuity Calculations
		11.11.1 Present Value of an Annuity: Finding P Given A
		11.11.2 Installments Paying for an Item: Finding A Given P
	11.12 Future Value of a Series of Payments: Finding F Given A
	11.13 Annuity Required to Reach a Goal Amount: Finding A Given F
	11.14 Summary of Equivalence Formulas
	11.15 Worth Analysis Techniques: Rationale and Vocabulary
	11.16 Present Worth Analysis
		11.16.1 Example: Small Excavator
	11.17 Equivalent Annual Worth
		11.17.1 Example: Best Job Offer
	11.18 Internal Rate of Return
	11.19 Limitations of the Internal Rate of Return Method
	11.20 A Practical Example Using Present Worth Analysis
	11.21 Comparison Using Equivalent Annual Worth
	11.22 Summary
	Review Questions and Exercises
Chapter 12 Project Cash Flow
	12.1 Cash Flow Projection
	12.2 Cash Flow to the Contractor
	12.3 Overdraft Requirements
	12.4 Comparison of Payment Schemes
	Review Questions and Exercises
Chapter 13 Project Funding
	13.1 Money: A Basic Resource
	13.2 Construction Financing Process
	13.3 Long-Term Pro Forma Example
	13.4 Mortgage Loan Commitment
	13.5 Construction Loan
	13.6 Owner Financing Using Bonds
	13.7 Build, Operate, and Transfer
	Review Questions and Exercises
Chapter 14 Equipment Ownership
	14.1 General
	14.2 Equipment Ownership and Operating Costs
	14.3 Depreciation of Equipment
	14.4 Straight-Line Method
	14.5 Declining Balance
	14.6 Production Method
	14.7 Depreciation Based on Current Law
	14.8 Depreciation versus Amortization
	14.9 Interest, Insurance, and Tax Costs
	14.10 Operating Costs
	14.11 Overhead and Markup
	Review Questions and Exercises
Chapter 15 Equipment Productivity
	15.1 Need for Heavy Equipment
	15.2 Productivity Concepts
	15.3 Cycle Time and Power Requirements
	15.4 Power Available
	15.5 Usable Power
	15.6 Equipment Balance
	15.7 Random Work Task Durations
	Review Questions and Exercises
Chapter 16 Construction Labor
	16.1 The Labor Resource
	16.2 Short History of Labor Organizations
	16.3 Early Labor Legislation
	16.4 Norris-LaGuardia Act
	16.5 Davis-Bacon Act
	16.6 National Labor Relations Act
	16.7 Fair Labor Standards Act
	16.8 Union Growth
	16.9 Labor Management Relations Act
	16.10 Other Labor Legislation
	16.11 Vertical versus Horizontal Labor Organization Structure
	16.12 Jurisdictional Disputes
	16.13 Union Structure
	16.14 National Unions
	16.15 State Federations and City Centrals
	16.16 Union Locals
	16.17 Union Hiring Halls
	16.18 Secondary Boycotts
	16.19 Open-Shop and Double-Breasted Operations
	16.20 Labor Agreements
	16.21 Labor Costs
	16.22 Average Hourly Cost Calculation
	Review Questions and Exercises
Chapter 17 Estimating Process
	17.1 Estimating Construction Costs
	17.2 Types of Estimates
	17.3 Detailed Estimate Preparation
	17.4 Definition of Cost Centers
	17.5 Quantity Takeoff
	17.6 Methods of Detailed Cost Determination
	17.7 Problems with Unit-Cost Method
	17.8 Resource Enumeration
	17.9 Work Package or Assembly-Based Estimating
	17.10 Summary
	Review Questions and Exercises
Chapter 18 Cost Control
	18.1 Cost Control as a Management Tool
	18.2 Project Cost Control Systems
	18.3 Cost Accounts
	18.4 Cost Coding Systems
	18.5 Project Cost Code Structure
	18.6 Cost Accounts for Integrated Project Management
	18.7 Earned Value Method
	18.8 Labor Cost Data Collection
	18.9 Charges for Indirect and Overhead Expense
	18.10 Project Indirect Costs
	18.11 Fixed Overhead
	18.12 Considerations in Establishing Fixed Overhead
	Review Questions and Exercises
Chapter 19 Materials Management
	19.1 Material Management Process
	19.2 The Order
	19.3 Approval Process
	19.4 Fabrication and Delivery Process
	19.5 Installation Process
	19.6 Material Types
	Review Questions and Exercises
Chapter 20 Safety
	20.1 Need for Safe Practice
	20.2 Humanitarian Concerns
	20.3 Economic Costs and Benefits
	20.4 Uninsured Accident Costs
	20.5 Federal Legislation and Regulation
	20.6 Occupational Safety and Health Administration Requirements
	20.7 How the Law Is Applied
	20.8 Safety Record Keeping
	20.9 Safety Program
	Review Questions and Exercises
Appendices
Appendix A Typical Considerations Affecting the Decision to Bid
	Typical Considerations: The Decision to Bid (or not)
	A. Goals and Present Capabilities of Your Company (Plans for Growth, Type of Work, Market Conditions)
	B. Location of the Work
	C. Time and Place for Bid
	D. How to Obtain Plans and Specifications
	E. Legal and Other Official Requirements
	F. Scope of Work
	G. Comparison of Resources
	H. Summary
Appendix B Performance and Payment Bonds
Appendix C Arrow Notation Scheduling Calculations
	C.1 CPM Calculations (Arrow Notation)
	C.2 Calculating the Early Event Times (Arrow Notation)
	C.3 Backward-Pass Algorithm (Arrow Notation)
	C.4 Identifying the Critical Path
Appendix D Generalized Network Relationships
	D.1 Generalized Relationships
	D.2 Finish-to-Start Relationships
	D.3 Start-to-Start Relationships
	D.4 Finish-to-Finish Relationships
	D.5 Generalized Relationship Scheduling Computations
	D.6 Forward Pass (Generalized Relationships)
	D.7 Backward Pass (Generalized Relationships)
	D.8 Float and Critical Path (Generalized Relationships)
Appendix E Productivity Scheduling Method Using Singularity Functions
Appendix F Plans for Small Gas Station
Appendix G Compound Interest Table
Appendix H Site Reconnaissance Checklist
Appendix I The Cumulative Normal Distribution Function
Bibliography
Index
EULA