Construction Management, 5th Edition

« It's often said that the construction professional has to be a "jack of all trades, and master of all." This text covers a wide range of subjects, reflecting the breadth of knowledge needed to understand the dynamics of this large and complex industry. This edition includes updated chapters on planning and scheduling, a new chapter addressing linear scheduling methods, material regarding the historical background of construction as a profession, and includes an Instructor Resource of solutions to the end-of-chapter review exercises. This text has become a standard course text at many universities. The first four editions have enjoyed wide success as an introductory treatment of the subjects which are critical to success in the construction industry. This fifth edition preserves the features that have been most appreciated by its users throughout the years, and adds suggestions provided by instructors and students through formal surveys and informal feedback to the authors. »-- Résumé de l'éditeur 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 Construction Management, 5th Edition equips students with a broad understanding of what one might encounter as an engineer and/or manager in the complex world of construction. This text covers a wide range of qualitative and quantitative subjects involving technical, management, legal, financial and leadership issues. The previous four editions have enjoyed worldwide use, giving thousands of students the foundation they need to succeed in the construction industry. The fifth edition includes new content and a more streamlined layout.