Construction management jumpstart

SERIOUS SKILLS.

Barbara J. Jackson, PhD, DBIA

Construction

Management JumpStart

Quickly and Effectively

About the Author

2nd Edition

The Best First Step Toward

a Career in Construction

Management

Jackson Construction Management JumpStart

2nd

Edition

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$35.99 CAN

COMPUTERS/Desktop Applications/

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Launch Your Construction

Management Career—

Written by an expert with over 20 years of experience as a licensed contractor,

the new edition of this bestselling guide has been revised and updated and is more

timely than ever. Get a thorough introduction to construction management basics, see

how today’s hot issues such as sustainability and Building Information Modeling

(BIM) are impacting the industry, and master the very latest techniques and tools

of the trade.

• Review the basics, including industry sectors, project players, and professional

affi liations

• Find out what it takes to be a construction manager, take an aptitude quiz, and

check your “fi tness”

• Understand the complete process of design and construction

• See how work is obtained and learn the ins and outs of contract documents

• Learn how to estimate project costs, administer contracts, and manage a job site

• Build and maintain a project schedule

• Measure performance, monitor safety, and control quality

• Identify, evaluate, and manage project risks

• Get up to speed on Building Information Modeling (BIM)

Barbara J. Jackson is Director of the California Center for Construction Education and a Professor of Construction Management at

California Polytechnic State University, San Luis Obispo. She holds a BS in Housing and Design, an MS in Construction Management,

and a PhD in Education and Human Resources. With over 20 years of experience as a licensed contractor and design-builder, she

is a nationally recognized speaker and consultant on alternative project delivery.

In-Depth Coverage for

Anyone Considering a

Career in Construction

Management

A Valuable Reference

and Resource for Those

Already in the Industry

Introduces the Design￾Build Institute of America

(DBIA), the American

Institute of Constructors

(AIC), and the Construction

Management Association

of America (CMAA)

Certifi cation Programs

ISBN 978-0-470-60999-6

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Construction Management

JumpStart

Second Edition

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Barbara J. Jackson

Construction Management

JumpStart

Second Edition

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Acquisitions Editor: Agatha Kim

Development Editor: Kelly Talbot

Technical Editor: Paul Weber

Production Editor: Angela Smith

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Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

ISBN: 978-0-470-60999-6

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accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation war￾ranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice

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The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does

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Library of Congress Cataloging-in-Publication Data:

Jackson, Barbara J.

Construction management jumpstart / Barbara Jackson. — 2nd ed.

p. cm.

ISBN-13: 978-0-470-60999-6 (pbk); ISBN-10: 0-470-60999-0 (pbk); ISBN: 978-0-470-76806-8 (ebk); ISBN: 978-0-470-76808-2 (ebk);

ISBN: 978-0-470-76807-5 (ebk)

1. Construction industry — Management. I. Title.

HD9715.A2J32 2010

624.068 — dc22

2010013509

TRADEMARKS: Wiley, the Wiley logo, and the Sybex logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/

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Dear Reader,

Thank you for choosing Construction Management JumpStart, Second Edition. This book is part of a fam￾ily of premium-quality Sybex books, all of which are written by outstanding authors who combine practical

experience with a gift for teaching.

Sybex was founded in 1976. More than 30 years later, we’re still committed to producing consistently excep￾tional books. With each of our titles, we’re working hard to set a new standard for the industry. From the

paper we print on, to the authors we work with, our goal is to bring you the best books available.

I hope you see all that reflected in these pages. I’d be very interested to hear your comments and get your

feedback on how we’re doing. Feel free to let me know what you think about this or any other Sybex book by

sending me an email at [email protected]. If you think you’ve found a technical error in this book, please visit

http://sybex.custhelp.com. Customer feedback is critical to our efforts at Sybex.

Best regards,

Neil Edde

Vice President and Publisher

Sybex, an Imprint of Wiley

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To Jim Rodger, for dedicating 26 years of his life to quality construction management

education and for always putting the students first.

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Acknowledgments

No great accomplishment ever happens in a vacuum. There are always a lot of people behind the scenes who

deserve much of the credit for any good thing that makes it to the light of day. I believe this book is one of those

good things, and it would never have happened without the hard work and dedication of several people.

I want to start by thanking Sybex for launching the JumpStart series. I believe that it serves a unique purpose

by introducing the public to a number of career paths that they may otherwise never encounter. I am especially

grateful to Elizabeth Peterson for discovering my web page and making the phone call asking whether I would

be interested in writing this book. I want to acknowledge her for recognizing construction management as the

untapped career opportunity that it is. Elizabeth, by initiating this book on construction management, you have

provided a great service to the construction industry and the clients it serves. Thank you.

I also want to thank the many other talented members of the Sybex team who helped put this book together. I’ll

start by thanking my developmental editors, Brianne Agatep and Maureen Adams, for walking me through the writ￾ing process and taking care of all of my formatting errors. Next I want to give a special thanks to Suzanne Goraj,

who cleaned up all of my grammatical gaffes and helped my message ring loud and clear. And to Mae Lum, the pro￾duction editor, a special thank-you for keeping everything on track while I traveled around the country teaching semi￾nars and doing consulting work for the construction and design-build industry. I’d also like to thank Agatha Kim,

Kelly Talbot, and Angela Smith for all of their contributions to making the second edition of this book even stronger.

Of course, I would be remiss without thanking the rest of the Sybex team responsible for tying up the loose

ends and putting the whole thing together: compositor Kate Kaminski of Happenstance Type-O-Rama, illustra￾tor Jeff Wilson of Happenstance Type-O-Rama, proofreader Nancy Riddiough, and indexer Nancy Guenther.

For the Second Edition, copyeditor Kim Wimpsett, compositor James Kramer of Happenstance Type-O-Rama,

illustrator Richard Sheppard of Happenstance Type-O-Rama, proofreaders Publication Services, Inc., and

indexer Jack Lewis.

In addition to the fine folks at Sybex, a number of other supporters must be mentioned. Let me start by

acknowledging several authors, most of them good friends and fellow faculty, who have written really good

texts used as general references in the writing of this book.

◆◆ Managing the Construction Process: Estimating, Scheduling, and Project Control by Frederick E. Gould (2004)

◆◆ Construction Jobsite Management by William R. Mincks and Hal Johnston (2004)

◆◆ Management of Construction Projects: A Constructor’s Perspective by John E. Schaufelberger and

Len Holm (2002)

◆◆ Construction Management Fundamentals by Clifford J. Schexnayder and Richard E. Mayo (2004)

◆◆ BIM and Construction Management: Proven Tools, Methods, and Workflows by Brad Hardin (2009)

I extend a very special thank-you to my dear friend, colleague, and technical editor Paul Weber for his diligent

review of every word in the manuscript for technical accuracy and application. Paul, I greatly appreciate your

support and assistance in helping me achieve this goal. And as always, your abilities to communicate graphically

were put to good use in several instances throughout the book.

To my department head, Allan Hauck, and to my colleagues and students at Cal Poly State University, thank

you for putting up with my mental absences while I was focused on the completion of this book and for encour￾aging me every step of the way.

And finally, as always and forever, I thank my husband Wayne for his continued support, love, and understanding

year after year while I continue to pursue the passions of my heart.

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About the Author

Barbara J. Jackson is Director of the California Center for Construction Education and a Professor of

Construction Management at California Polytechnic State University, San Luis Obispo. She holds a BS in

Housing and Design, an MS in Construction Management, and a Ph.D. in Education and Human Resources.

With over 20 years of experience as a licensed contractor and design-builder, she is a nationally recognized

speaker and consultant on alternative project delivery.

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Contents at a Glance

Introduction xix

Chapter 1 The Construction Industry 1

Chapter 2 What Is Construction Management? 39

Chapter 3 How We Get the Work 69

Chapter 4 The Construction Contract 93

Chapter 5 Project Stages 117

Chapter 6 Estimating Project Costs 139

Chapter 7 Contract Administration 173

Chapter 8 Construction Operations and Job Site Management 201

Chapter 9 Project Planning and Scheduling 239

Chapter 10 Monitoring Project Performance 259

Chapter 11 Managing Quality and Safety 283

Chapter 12 Managing Project Risks 309

Chapter 13 Building Information Modeling 329

Appendix A Common Acronyms Used in Construction 341

Appendix B Answers to Review Questions 343

Glossary 359

Index 367

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Contents

Introduction xix

Chapter 1 The Construction Industry 1

The Scope of the Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

“It’s Just Construction” . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

A Historical Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Ancient Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Egypt and the Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Greek Influence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Roman Empire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

The Middle Ages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

The Renaissance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

The Industrial Revolution . . . . . . . . . . . . . . . . . . . . . . . . . 7

The Age of the Skyscraper . . . . . . . . . . . . . . . . . . . . . . . . . 7

The 20th Century . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The Age of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Industry Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Residential Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Commercial Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Heavy Civil Construction . . . . . . . . . . . . . . . . . . . . . . . . 15

Industrial Construction . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Environmental Construction . . . . . . . . . . . . . . . . . . . . . . 17

The Project Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Primary Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Secondary Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

The Industry Image . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

An Industry in Transition . . . . . . . . . . . . . . . . . . . . . . . . 28

Making a Difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Career Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Advancement Opportunities . . . . . . . . . . . . . . . . . . . . . . 33

Educational Offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Professional Affiliation and Certification . . . . . . . . . . . . . 34

Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Chapter 2 What Is Construction Management? 39

Construction Management Defined . . . . . . . . . . . . . . . . . . . 40

The Construction Project . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Project Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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xii Contents

The Owner Sets the Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Scope Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Project Delivery Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

What Is Project Delivery? . . . . . . . . . . . . . . . . . . . . . . . . . 46

Types of Project Delivery . . . . . . . . . . . . . . . . . . . . . . . . . 46

Trends in Project Delivery . . . . . . . . . . . . . . . . . . . . . . . . 53

Project Delivery Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

What Does a Construction Manager Do? . . . . . . . . . . . . . . . 55

Construction Management Functions . . . . . . . . . . . . . . . 56

Problem Solving and Decision Making . . . . . . . . . . . . . . 59

What It Takes to Be a Construction Manager . . . . . . . . . . . 59

General Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

A Typical Career Track . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Want to See If You Have the Right Stuff? . . . . . . . . . . . . 64

Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Chapter 3 How We Get the Work 69

Finding the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Marketing Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

The Rules of the Game . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Sources of Information........................... 73

The Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

The Competitive Bidding Process . . . . . . . . . . . . . . . . . . . 75

How We Play the Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Competition Criteria and Project Delivery . . . . . . . . . . . . 76

Selection Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Making the Bid/No Bid Decision . . . . . . . . . . . . . . . . . . . . . 89

A Final Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Chapter 4 The Construction Contract 93

The Contract Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

The Drawings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

The Project Manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

The Construction Specification Institute . . . . . . . . . . . . . . 104

The CSI MasterFormat 2004 . . . . . . . . . . . . . . . . . . . . . 105

Contract Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Lump-Sum Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Cost-Plus-Fee Contracts . . . . . . . . . . . . . . . . . . . . . . . . . 112

Guaranteed Maximum Price Contracts . . . . . . . . . . . . . 113

Unit-Price Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

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Contents xiii

Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Chapter 5 Project Stages 117

The Design and Construction Process . . . . . . . . . . . . . . . . 118

The Design Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

The Pre-construction Stage . . . . . . . . . . . . . . . . . . . . . . 121

The Procurement Stage . . . . . . . . . . . . . . . . . . . . . . . . . 127

The Construction Stage . . . . . . . . . . . . . . . . . . . . . . . . . 128

The Post-Construction Stage . . . . . . . . . . . . . . . . . . . . . 132

The Successful Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

Measuring Project Success . . . . . . . . . . . . . . . . . . . . . . . 137

Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Review Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Chapter 6 Estimating Project Costs 139

What Is an Estimate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

The Characteristics of a Good Estimator . . . . . . . . . . . . . . 142

Factors Impacting Project Cost . . . . . . . . . . . . . . . . . . . . . . 143

Project Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Complexity of the Project . . . . . . . . . . . . . . . . . . . . . . . 144

The Site Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Time of Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Quality of the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Market Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

Management Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Types of Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Conceptual Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Preliminary Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Detailed Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Understanding Project Costs . . . . . . . . . . . . . . . . . . . . . . . . 150

Direct Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

Indirect Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

The Estimating Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

How You Build the Estimate . . . . . . . . . . . . . . . . . . . . . 154

Organizing the Work of the Estimate . . . . . . . . . . . . . . 154

Calculating Quantities . . . . . . . . . . . . . . . . . . . . . . . . . . 156

Pricing the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Obtaining Subcontractor and Vendor Bids . . . . . . . . . . 161

Putting It All Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

General Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

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