Construction Management Plan for Industrial Complex Development

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Construction Practice and Management
(2019)

Index
Contents
Introduction......................................................................................................................................3
LO1:.................................................................................................................................................4
Construction Industry..................................................................................................................4
Professionalism in the Industry...................................................................................................4
Parties within a Construction Organisation.................................................................................6
Contractual work tendered by the Contractors............................................................................7
LO 2:..............................................................................................................................................10
Various Construction Companies..............................................................................................10
Relationships between the construction companies..................................................................11
Difference between Construction Company Contract and Tenders..........................................11
LO 3:..............................................................................................................................................13
Stages in Construction Project & BMI......................................................................................13
Contract Planning Techniques...................................................................................................14
Impacts of BIM on the construction operation..........................................................................14
LO 4:..............................................................................................................................................15
Health & Safety as an Integrated Part of Construction Process................................................15
Role of Collaboration & Communication in Ensuring Safe Working Practices.......................16
Benefits to the Construction Company due to changes in Health & Safety Legislation...........17
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

List of Figures
Figure 1: Roles contributing to professionalism in the Industrial Complex Project......................6
Figure 2: Methods of Contracting a Tender....................................................................................8
Figure 3: Construction process......................................................................................................14
Figure 4: Construction Site Scenario.............................................................................................16

Introduction
In this report, a detailed analysis of the construction industry and the behavior of the construction
companies are given. A detailed description of the structure and the activities of these
construction companies are also provided. A construction industry can be heavily affected by the
changing economy of the country. The main objective of this report is to identify the working
structure and plans to be undertaken by a company to develop a successful industrial complex.
This report will identify the relationship between different companies in the market considering
their tendering process. Identification of strategies that are implemented by the companies to
address the safety and health issues.

LO1:
Construction Industry
Managing the construction industry is one of the most important and challenging processes.
There is a great need to gather assistance from many professionals in the construction industry.
These professionals help the project manager to identify the objective and feasibility of the
project. The construction professionals can be from any field connected with the construction
such as interior designing, architecture, mechanical engineering, etc. They ensure the structural
stability of the project and addresses the financial aspects of the project.
Professionalism in the Industry
Any professional in construction is expected to show a high level of professional and business
ethics. This display and representation of the working ethics in the industry by a professional are
termed as professionalism. It helps in deciding the success of an individual in his job. In order to
develop professionalism in the construction of the Industrial complex on the outskirts of London
some traits should be managed by the members of the project. Such as –
 Positive attitude - which helps in solving problems and handling risks
 Proficiency – A profound knowledge and confidence in the professionals should be
present
 Good communication skills
 Clean and decent appearance
 A definite vision of the project
The above traits are required to be inherited and displayed by the professionals who are hired in
the Industrial complex development. The professional roles to be hired in the proposed project
should have the required professional traits. This will help in creating a better working
environment and will reduce the workload of the project manager (UKEssays.com, 2019).

Figure 1: Roles contributing to professionalism in the Industrial Complex Project
Professional institutes are assigned the task of raising and developing professional standards,
skills, and practices in the construction industry. In order to achieve this objective, there is a need
for conducting educational training programs within the institutes which will help the project
members in the development of their professional skills.

Parties within a Construction Organisation
There are many parties involved within a construction project and these parties consider various
methods of creating agreements to build their assumptions for the requirements of construction
work. One of the major parties in the construction is the client or the owner. The owner has
several roles in the construction process. The owner can be a construction firm or an individual
who is assigned the task of handling the construction process with a team presented to him
(Stiegler, 2018).
The major parties involved in the construction business are:
Parties Roles & Linkage
Owner An Individual or a Construction Firm (heir managers or
contractors)
Contractor Party hired by Owner (responsible for construction work)
Civil Engineer Assists the construction project (addresses the contractor)
Sub-contractor Provides additional resources (managed by the contractor)
Architect/Designer Responsible for the map/interior of the structures. (consults
with the owner and the engineer)
Project Manager Assists in daily activities (responsible to both the contractor
and the owner)
Consultants Specialists hired to provide structural and financial advice
(helps the owner in understanding the objective)
For the construction scenario of the Industrial complex to be built on the outskirts of London,
there is a need for hiring a contractor and a project manager who will help in the construction
work and manage this huge project. This project is sub-divided into three major projects, which
includes construction of the following:
 Industrial Complex
 A bridge over the river, and

 A Road network to connect the complex with the two highways.
The constructor and the project manager are responsible for gathering the rest of the required
resources and requirements of the project. This hierarchical assignment of responsibilities is
necessary for the construction of the industrial complex successfully.
Contractual work tendered by the Contractors
The contractor is responsible for all the work related to the requirements and services gathering
and contracting tender from the trusted institutions or sub-contractors. There are mainly 3 types
of techniques by which tendering is done in the construction project - by open tendering, by
selective tendering and by negotiation (The Constructor, 2018).
Figure 2: Methods of Contracting a Tender
Open Tendering
This type of tendering process involves advertisement of the proposed plan and constructional
project. This helps the company’s contractor in attracting a lot of contractors interested in
making investments in the project. A deposit is accepted from the contractors which are returned
after a bond signing. But this process is not reliable and efficient and results in wastage of
resources. There is a very small possibility of getting a contract because there is no proper

method for capital assessment is involved. The inappropriate judgment of the price details might
result in future risks to the project.
Selective tendering
In selective tendering, the owner advertises the construction project to attract the contractors and
then creates a list of selected contractors to be invited for the bidding process. Details of the
requirements from the contractor are gathered previously. This provides a proper idea of the
contractors and the facilities they are able to offer in the construction. But it is harder to
determine and accept the lowest bid offered to the owner.
Both the above techniques have a common drawback. The requirements and conditions of the
contractors might change with time. This can result is a huge loss.
Negotiated tendering
In this process, the owner or the contractor invite a specific contractor whom they think can
fulfill the requirements. All the prices are confirmed by a mutual discussion between the owner
and the contractor which helps in resolving the financial issues easily. But it is not feasible for
large construction projects and public projects have some restrictions in using this tendering
process (The Constructor, 2018).
Proposed Tender Contracting Method
In the proposed scenario, the tendering process which is going to be beneficial is the Selective
tendering. The complexity of such a huge project reduces the viability of the negotiated
tendering. Once a tender is contracted using the selective tendering method, the owner can easily
find a short-term contractor using the negotiated tendering method. As this is a private project
hiring multiple contractors using different methods is possible. Both of these methods can help in
overcoming the risks generated from the others.
The construction industry has developed a lot in the past few years by accepting a lot of
principles and methodologies for a successful construction project. The construction structure to
be followed in the successful development of the industrial complex should include the
following practices –

 Develop a flexible flow and friendly environment for communication.
 Effective and frequent planning of the workflow should be practiced.
 Properly observe the construction progress and ask a question to resolve any doubts.
 A platform should be provided to discuss and analyze the budget.
 Implementation of a reporting system which can be automated accordingly.

LO 2:
Various Construction Companies
Construction business and companies are classified into different categories based on the type of
tasks performed by them. The classification of these companies is given in the below table.
Types Work
1. Renovators Small-budget renovations
2. General Companies Alteration of a building or construct new buildings
using sub-contractors.
3. Private Owners Builds private building for personal use
4. Private Contractors (Real-estate) Develop personal buildings and might sell it
afterward.
5. Agents or Managers (Professional) Handles project for a different Employer
6. Bundled-work Contractors Undertakes the completion of construction as well
as designing
7. Sponsored Contractors/Builders Government buildings and maintenance work
For the industrial complex, it would be feasible to hire a professional manager or a bundled-work
contractor who are private contractors/companies working as an agent for the owner to complete
a construction task entirely. The industrial complex is a huge project and needs professional
guidance and consultation which can be provided by these professional contractors and
organisations.

Relationships between the construction companies
The relationships between construction companies and contractors working on the construction
should be well developed an reflect the professionalism in the project. The relationship activities
that might exist between the companies and stakeholders are:
1. Developing trust between the owner and the stakeholders. It is a very crucial task in any
construction process (small or big) to have a trust factor between the stakeholders.
2. All the companies should develop a single objective for the project. A single vision or
goal helps the companies to work together with coordination.
3. A proper vision of the project should be built within the team members of the
construction project. This will help in generating a better relationship with the workers
and they will give better output.
4. A frequent communication method for companies/stakeholders should be established.
This will help in improving the transparency and flexibility in the construction of the
industrial project (Haughey, 2012).
From the above research, it is very clear that the main link that connects the construction
companies is the existence of a common goal and objective of the project between all the
companies and the stakeholders. A clear vision for a successful and profitable task drives the
companies to put their best efforts and provide quality services in the construction process.
Difference between Construction Company Contract and Tenders
A tender is mainly given to an individual or a company who has proposed the lowest bid for the
construction task. The tender is generated for a specific task and a single company is selected
from multiple companies, will be selected which will be eligible to get the tender. A company
which gets the tender becomes a stakeholder or partner in the project.
Whereas, a contract is a bond or a document signed between two companies having a mutual
understanding between each other. A contract is also given to a company which offered the
lowest price in the bidding process. A company which signs a contract is bind to follow the terms
and conditions mentioned in the contract.
For a proper understanding, the tender can be easily related to an offer letter for a job and a
contract can be related to a signed letter of acceptance which bounds the company to follow it.