An Overview of Management Principles in the Construction Sector

This report provides a comprehensive overview of management principles as applied within the construction industry. It delves into the core functions of management, including planning, organizing, staffing, directing, and controlling, and explains their significance in achieving project goals. The r...Read More

Acknowledgment
Apart from my effort, the success of this project depends largely on the encouragement and
guidance of many others .
I take this opportunity to express my gratitude to each and everyone who has been instrumental
in the successful completion of this assignment. I would like to extend my sincere thanks to my
dear lecture Mr. Sunesh Hettiarachchi , for his constant support and help . And without him, I
would not have been able to accomplish this assignment
Executive summary
Construction Management is a professional service that applies effective management techniques
to the planning, design and construction of a project from inception to completion for the
purpose of controlling time, cost and quality.
Construction Management is a discipline and management system specifically created to
promote the successful execution of capital projects for owners.
I have explained principles of management, in relation to construction industry, and its market
activities, and role of its professionals. As well as organizational structures environmental
management issues, procumbent methods have been explained in this assignment.
Introduction
Management is a set of activities including planning, decision making, organizing, leading and
controlling directed at an organization’s resources (human, financial, physical and informational)
with the aim of achieving organizational goals in an efficient and effective manner.
.management has lots of stages an organization is a combination of all these things. In an
organization each and every member has responsibilities and they have to work as a team.
Management consultants help organisations to solve issues, create value, maximise growth and
improve the business performance of their clients. They will identify options for the organisation
and suggest recommendations for change, as well as helping with additional resources to
implement solutions.

Task 01(P.1.2, P.1.2)
What is management?
A set of activities (including planning and decision making, organizing, leading and controlling) directed
at an organization’s resources (human, financial, physical and information) with the aim of achieving
organizational goals in an efficient and effective manner.
Definitions of management
1. The organization and coordination of the activities of
a business in order to achieve defined objectives
Management is often included as a factor of production along with‚ machines, materials,
and money
2. The directors and managers who have the power and responsibility to make decisions and
oversee an enterprise.
3. The collective body of those who manage or direct any enterprise or interest; the board of
managers.
Manager should have ,
• Activators - The type of strategy followed by a manager before his workforce sets on with performance.
• Behaviors - How the workforce performs or behaves within the activity or situation as a result of activators or
consequences.
• Consequences - How the manager handles the workforce after the performance.
Manager should have problem solving and decision making skills. As well as time management. Manager will need to
know the basic ethics of problem solving
Functions of management
1.planing
2.Staffing
3.Organizing
4.directing
5. controlling

Planning : setting the organization’s goals and deciding how best to achieve them this is the basic
managerial function. planning is a decision in advance, what to do, when to do, how to do
and who will do a particular task. It bridges the gap from where we are and where we want
to be .Planning is a process which involves thinking before doing.
Staffing : this is filling, keeping filled positions, in the organization structure through defining work-
force requirements, selecting compensating training. Staffing involves manning the position
created by organization process and concerned with human resources of an organization.
Organizing : determining how best to group activities and resources.
▪ When there is more than one employee needed to carry out a plan.
▪ Then organization is needed.
▪ A team must be formed.
▪ Each job must be carefully defined in terms of what is to be done.
▪ Establish delegation of responsibility.
Directing : motivating members of the organization is a part of directing. It is the part of managerial
function which actuates the organizational methods to work efficiently for achievement of
organizational purposes.
Controlling : monitoring and correcting activities are the main two things of controlling. This is a method
of checking up to find what has been done and what must be done. This is essential for
achieving objectives of an enterprise.
Planning
Planning is normally done by higher level managers of the organization. It includes,

❖ Planning
❖ budgeting
❖ sets targets
❖ establishes detailed steps
❖ allocates resources
There are 3 types of planning
strategic planning: manager needs to plan the duration of the project.and also he has to plan the
cost of the project.size of the workforce. Number of employees in each catogary .
such as engineers, architechs, car penters, plumbers, welders. Starting date and
finishing date should be plan before stat the project .
tactical planning: manager has to plan where to put the entrance , where to put the exit, where to
locate the stores, where’s to install the crains, where to place the security room
etc. when to bring the row materials, when to pay the salaries for the workers,
should plan by manager.
Contingency planning: manager has to plan the alternative solutions available in case of the
original plan fail. If a supplier of steel required for the building did not supply
on time , manager should have arrangements with another supplier. If the
architect or structural engineer withdraws from the project or something
happened to them, several other people of similar calibre should have been
line-up by the manager. If the electricity from national grid is disconnected
due to some reason or other the manager should have planned for a
generator with a sufficient capacity.
Before hiring a supplier there has few things that always need to be ticked off before hiring one
• Do they supply good quality materials and equipment?
• Do they guarantee they can meet your target
• Does the provider have a good standing and recommendation rate?
When dealing with any person in the construction industry, it’s a good idea to take the time to make
careful decisions. Manager should have a good knowledge for that.

Staffing
its describes the overall approach for acquiring and managing human resources of the project. This is
consisting with overall staffing approach, location, staff acquisition, training, reassignment
Overall approach : for staffing the project we take this type . with contractors, use of employees and
outsourcing firms. For example when some of the work is subcontract we can situate that here. We can
discuss about the timing of bringing in resources if it’s important .
Location: we should explain correctly to the team members where the team or group is located. It is
very important. Because some team members may be working from home or somewhere else
.sometimes the team members may be co-locating. We should have essential team members that live in
other areas, cities or other countries.
Staff acquisition: basically this is a table that explains the types of resources. It describes what types of
resources are needed for the project. At what time they are needed and the place they are coming from.
If we are planning to use properties (resources) or new workers we may need to explain when we will
start to take on for the location
Training: most of the time we may have enough number of workers(team members) for the project.
But the main problem is they don’t have the right skills. At that time if we know of specific workers who
will need good training and guiding state so in this section. This section only include the training that
specifically required for your team to be successful on the project.
Reassignment: we should give explanation the arrangement for reassigning the project team once
their all duties, roles and job on the project is completed.
Project rewards and consequences: explain if there will be specific incentices for all the members on
your project. It could be very simply like formal “thanks” awards at weekly status meeting. Sometimes
there can be Financial bonuses based on the victorious end of the project.
Interview new team members: when the project comes to the final stage, a project team must be put
together. You may have variety of workers and contractors.in some cases the workers are assigned
based on availability and skills. But sometimes we have to hire workers for the position from somewhere
else.

The interview process is very important. There have some rules to remember before your interview.
Understand the job opening : sometimes people interview a worker and immediately they forgot what
position the worker was being interviewed. So if you have a good picture of the worker and if you can
identify the job that he can do, you can easily evaluate the worker.
Understand your role: in the interview process normally people have defferent roles and they expect
different things.for an example you may be asked a practical or industrial interview.from that every
interviewr should realize whether he has specific interview prospects.
Be prepared: before the interview you sholud be prepared well.some times you may have additional
questions that your company requires you to ask a part of standard review process.
Go into the interview with a clear mind.you should only focus on the discusion and dnt think about
other problems that you need to fix.
These are very important and help certify that practised, skilled and qualified candidates are hired.this
helps to increase the value that you give to the interview procedure and helps you company make
excellent.
Organizing
❖ Creates structures
❖ Job descriptions
❖ Staffing
❖ Hierarchy
❖ Delegates
❖ Training
Organizing is deciding how best to group organizational activities and resources.managers should
arrange a structure that links workers, resources and tasks together. Its very easy to achieve the
organizational goals. All the structural elements of the company and how those elements work together
are used to manage the total organization. The structute shown bya chart and it shows positions in the
organization.manager has a responsibility to ensure the workers have good skille and talents which need
for the workplace.manages should have know whether appropriate workers are hired.sometimes
manager has to order parts or other components which need for the project.in todays business world,
things chang very quckly. Therefore manager should have well organizing skills.for an example
sometimes site manager has to order materials and other things which need for the project.when
manager organize these things he should plan when materials should need and when the materials
should order. Manager must be organized to keep track of items needed, without having components
too early and too late.

Main contractor must organize each of subcontractors and receipt of building materials. Managers who
take the organizing function seriously and always update their plans appropriately will achieve success in
the workplace and the whole project.
Directing
❖ Solves problems
❖ Negotiates
❖ Brings to consensus
It is the part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. Directing is leading workers to achieve the goals. Managers
should have leadership skills in order to get workers to perform successfull.sometimes managers are
trying to direct by empowering workers. It doesn’t mean that manager hasn’t responsibility .empowered
workers can make decisions about what plans will they have in next few weeks. Managers give full
support for empowered workers and they always try to perform well on the job. Also managers should
have negotiation skills. Manager should know to negotiate with each other and come to a good
resolution.
Controlling:
❖ Implements control systems
❖ Performance measures
❖ Identifies variances
❖ Fixes variances
Cost control and quality control are the main parts of controlling. Defects or failures in constructed
facilities can effect in very large costs. Even with minor defects, re-construction may be required and
facility operations damaged. Increased costs and delays are the result of these failures. In the worst
case, failures may cause personal injuries or physical properties. Good project managers always
concentrate their mind on these things and try to certify that the job is done right the first time and that
no major accidents occur on the project.
cost control, the most important decisions regarding the quality of a completed facility are made for the
period of the design and planning stages rather than during construction. It is during these opening
stages that component structures, material requirements and functional performance are decided.
Quality control during construction consists largely of insuring applicable to these original plans and
planning consistence.

Quality management is a method for ensuring that all the activities necessary to design, develop and
impliment a product or service are effective and efficent with respect to the system and its
performance.
In construction engineering and manufacturing, quality control and quality engineering are involved in
developing systems and ensure products or services are designed and produced to meet or exceed
customer requiments.
Manager should provide material for works at the right time and manager has a responsibility to control
the workers when they work at the site. When workers working at the site manager should control the
materials which using by workers at the site. Sometimes workers don’t care about materials and they
don’t know the cost of those materials.
❖ Managing the health, safety, and welfare of employees
❖ Managing the maintenance and safety of plant and machinery
❖ Ensuring proper and safe delivery, storage, and handling of material
❖ Monitoring the overall functioning of each section and department of the project
❖ Managing the quality of all work carried out
❖ Ensuring the timeliness of all work carried out
❖ Ensuring effective utilization of manpower, plant, and material
❖ Monitoring the budget on all activities and taking corrective action
❖ Controlling project finance
Task 02(P1.13)
Leadership
the principal dynamic force that motivates and coordinates the organisation in the
accomplishment of its objectives. in another way leadership is a process of motivating people to
work together collaboratively to accomplish great things. Manager has to issue orders and
instructions and guide and counsel his subordinated in their work with a view to improve their
permonace and achieve enterprise objectives.
Leadership is the abilitity to build up confidence and zeal among people and to create an urge in
them, to be led. To be succeful leader , a manager must processs the qualities of foresight, drive
intiative, self confidence and personal intergity.
who are leadres?
• People who :
✓ Can influence the behaviros of others
✓ Are able to influence withoutt having to rely on force
✓ Are accepted by others as leaders
There are 3 types of leadership

1. Aurocraric
2. Domecraric
3. Lessie-Fair
Aurocraroc
– Leader makes decisions without reference to anyone else
– High degree of dependency on the leader
– Can create de-motivation and alienation
of staff
– May be valuable in some types of business where decisions need to be made quickly
and decisively
Domecraric
• Encourages decision making
from different perspectives – leadership may be emphasised throughout
the organisation
– Consultative: process of consultation before decisions are taken
– Persuasive: Leader takes decision and seeks to persuade others that the decision
is correct
– May help motivation and involvement
– Workers feel ownership of the firm and its ideas
– Improves the sharing of ideas
and experiences within the business
– Can delay decision making
Laissez-Faire
– ‘Let it be’ – the leadership responsibilities
are shared by all
– Can be very useful in businesses
where creative ideas are important
– Can be highly motivational,
as people have control over their working life
– Can make coordination and decision making
time-consuming and lacking in overall direction
– Relies on good team work
– Relies on good interpersonal relations

For an example if we are going to start a project ,Planning, staffing, deircting and controling are done by
leagers.when we have a project, the leader guiding all the things of the project.there is no correcting
decissions made.normally leader decides what to do, how to do, where as team members perform the
work.leader has to decide everything throughout the project. From begining leader has to manage
everything and he has a responsibility to manage the projest and give the right guidence at the righ time
to the workers. And Assist the team to forge a clearly articulated visionwith clear objectives and goals leader
needs to Devise a workplan in which each member isallocated clearly defined tasks that are meaningfuland
challenging for that individual. The leader should be a role model for the team –
good at communicating openly and honestly and winning the respect and trust of all involved.
when workers are going to lay a contreate leader has to Calculating the volume of ready-mix required for the
project, Health and safety when working with concrete, Materials needed, Preparing the concrete base,
Assembling the concrete formwork, Weather
Concrete should not be laid in very cold weather or in rainy conditions.therefore leader has to plan
everything correctlr before do something,
Leader first asks from the workers or team what to do and how to do something before make the
decission.leader gives a chance for everyone to give their ideas and plans for the project.
Team members can participating making decission. But the final decission is made by the leader.
Motivation
The act or process of stimulating to action, providing an incentive or motive, especially for an
act.
Motivation is considered goal-oriented behavior and the underlying motives. Motives arouse
and direct our behavior toward some goal
Work motivation is the set of internal and external forces that cause an employee to chose a
course of action and engaged in certain behaviors.
There are three elements of work motivation
1. Direction and focus of the behavior

2. Level of effort provided
3. Persistance of the behavior
There are three types of motivation theories.
1. McGregor’s Theory- X
2. McGregor’s Theory- Y
3. Maslow’s theory
4. Herzberg’s theory
McGregor’s Theory- X
A set of assumptions of how to manage individuals motivated by lower order needs
People inherently dislike work and will avoid it if they can
People must be coerced , controlled, derected, and threatened in order to make them work
The average human being prefers to be directed, wishes to avoid responsibility and has relatively little
ambition.
McGregor’s Theory- Y
A set of assumptions of how to manage individuals motivated by higher order needs
The expenditure of physical and mental effort in work is as natural as play or rest.
People can exercies self-direction and self-control in the service of objectives to which they are
commited.
The average human being learns, under proper conditions, not only to accept but to seek responsibiity.
Experiences in organizations result in passive and resistant behaviors; they are not inherent
Motivation, development potential, capacity for assuming responsibility, readiness to direct behavior
toward organizational goals are present in people
Management’s task—arrange conditions and operational methods so people can achieve their own
goals by directing efforts to organizational goals
Maslow’s theory
Maslow proposed the concept of "Hierarchy of Needs. He developed the concept of the hierarch of
needs:

Physiological needs: food and shelter
Security and safety needs: danger, threats and deprivation
Social needs: belonging and acceptance
Self-esteem needs: recognition and status
Self-actulization needs: creativity and self realization
Herzberg’s theory
Hygiene Factor - work condition related to dissatisfaction caused by discomfort or pain
◼ maintenance factor
◼ contributes to employee’s feeling not dissatisfied
◼ contributes to absence of complaints
Motivation Factor - work condition related to the satisfaction of the need for psychological growth
◼ job enrichment
◼ leads to superior performance & effort
suggestions for motivation
participation needs:
➢ encourage group decision making
➢ consult subordinates
➢ information sharing
power needs:
➢ endourage participation
➢ delegating authority
recognition needs:
➢ praising people for their achievements
➢ responding to people as individuals and not rolea
independence needs:

➢ delegating responsibility and authority
➢ assigning individual tasks
➢ encourage personal goal setting
achievement needs:
➢ setting realistic targets
➢ assigning challenging tasks
➢ giving performance feedback
➢ setting clear-cut goals
Task 03(P.2.1)
Construction industry take a special place in every country and its really support for the economy of
country. Therefore most of people like to connect with construction industry. Therefore government
and private sectors try to give more value for construction industry. For that companies and
organizations organize exhibitions.
Exhibitions
Organizations have a great chance to show the new construction methods and techniques and people
are really interesting about construction. There are some construction exhibitions in sri lanka in every
year at BMICH. Thousands of people come to that exhibition
Web sites
There are number of construction web sites in sri lanka. So people can get anything they want. They can
get information about engineers, architects, construction companies and everything. People can get
information at anytime. So it’s really easy to contact a construction company when we want to build a
house.
TV programmes
In present we can see people are talking about construction industry on TV. We can see some TV
programmes about construction on weekends. There is a TV program called KEDELLA on sirasa TV on
Saturday. So people can watch that programmes and they can take a rough idea about construction
field.
Services of provide the construction sector
There are so many services providing for the construction industry by government as well as private
organizations. This is a common thing in present society.

There are number of educational courses and trainings in sri lanka which conducting by the government
and private organizations.
There are so many private universities in sri lanka and they conduct number of courses for students of
construction industry. Quantity courses, architectural courses, draftsman courses and civil engineering
courses are available in sri lanka of both private and government universities.
Construction Contracts
Maga, Sanken, RS construction, Thudawe Brothers are the main private construction
companies in sri lanka. Apart from that there are some government companies also doing
construction. They are the main contractors. If we want to make a big commercial building we
can give the whole construction work for a construction company. They will finish the project in
particular time period.
Hiring Machines and Materials
Some people hiring machines and other equipments for construction projects. some of them
are, scaffoldings, Excavator, Drilling machines, Shell & Auger, Concrete mixer. Sometimes we
don’t have enough space in the construction site. Therefore we can take equipments at right
time. It’s really easy to both site manager and workers.
Task 04(P.2.2)
Roles and Responsibilities
Role Responsibility
Project Sponsor
Has ultimate authority and responsibility for the
project
• Approves Project Charter and subsequent
documentation
• Provides updates to executive
management
• Provides funding for the project (initial
funding, additional funds)
• Approves changes to scope, as required
• Removes obstacles that prevent the
project from moving forward

Project Manager
Responsible for planning, organizing, managing,
controlling and communicating on all phases of a
project
• Creates regular status reports and
distributes to project team
• Facilitates the identification of project
resource requirements and works with
resource managers and the project leader
to construct project teams
• Facilitates regular core team meetings to
review issues, project risks, and monitor
project progress
• Ensures all given objectives and
responsibilities of the team are properly
documented and approved on the roles
matrix
Project Leader
Provides subject matter expertise and functional
ownership and accountability for project results
• Leads core team meetings
• Develops the Project Charter in
teamwork with the project team and
resource managers for approval by the
sponsor(s)
• Ensures all given objectives and
responsibilities of the team are properly
documented and approved on the Roles
Matrix
Team Member
Responsible for contributing to overall project
objectives and specific team deliverables
• identifying risks associated with the
project
• working together as a team
• contributing towards successful
communication
• contributing towards positive
motivation
• Communicates project risks and escalates
issues to team lead
• Attends and actively participates in team
meetings
• understanding the purpose and
objectives of the project
• reporting progress against plan
• reviewing key project
deliverables/products
• identifying issues

Project Resource
Responsible for providing subject matter
expertise as needed
• Implements assigned deliverables/tasks
• Contributes subject matter expertise and
input as needed throughout the project
Team Leader
Responsible for contributing to overall project
objectives and specific team deliverables
• Contributes to overall project objectives
and specific team deliverables
• Coordinates team activities related to
project schedule
• Serves on the Core Team
• Provides regular status updates to the
Project Manager/Leader, estimated time
to completion, cause of variances, etc., as
defined by the project
Core Team Members
Provides day-to-day leadership for the planning,
implementation, and closing of a project
• Provides status updates on open action
items
• Manages project issues and risks
• Resolves issues and escalates when
required
• Manages individual sub teams
• Meets regularly to review issues and
monitor project progress
Role responsibility
HR
▪ Managing and leading the HR team
▪ Managing the HR & Personnel function
for all businesses in the group
▪ Creating & maintain personal files for
staff
▪ Handling conflict & disciplinary situations
▪ Providing employee supervision and
evaluations
▪ Improving nationals in the workforce of
the company
▪ Participate in the hiring, monitoring, and
firing of staff
▪ Record keeping of employee personal
benefits

Interior designer
▪ budgets your money, selects materials,
finds the right contractors, schedules jobs,
coordinates projects.
▪ should be present to correct any
problems as they occur, maintain focus
on the quality of the workmanship, and
be attentive to the budget, materials and
labor costs.
▪ develop designs that are appropriate,
functional and aesthetically pleasing
▪ makes sure the quality, function and style
of the project meet client’s expectations
Suppliers
▪ suppliers provide all the materials and
services needed for building projects
▪ Supply good materials for the project
▪ suppliers can offer delivery, the cutting
and dressing of wood, and the
sharpening of tools.
▪ Suppliers shoul supply materials at right
time
Quantity surveyor
▪ Single rate approximate estimates
▪ Cost planning
▪ Financial statements
▪ Procurement advice
▪ Cost control during construction
▪ Cost planning
▪ Budget estimating
▪ Advice on tendering procedures
▪ contract arrangements
▪ Preparing final account
▪ Measuring work and adjusting variations
in accordance with the terms of the
contract
Civil engineer
▪ planing
▪ designing
▪ oversee construction and maintenance of
building structures and facilities
▪ make sure that the document in hand is
the correct designed and issued for
construction
▪ supervise the construction contractor to
make sure that work is being carried out
as designed and in accordance to
standards
▪ adhere to the design document, quality
of work, the schedule, safety of the
people, costs
▪ Managing budgets and project resources
▪ Resolving design and development
problems
Mechanical engineer
▪ provide efficient solutions to the
development of processes and products.
▪ supervise the electricians in handling all
the electrical works considering the
safety and quality requirements
▪ reads and studies the electrical plans
▪ do necessary actions whether to correct
or to improve the design
▪ Prepare specifications for purchase of
materials and equipment.
▪ Design, implement, maintain, and
improve electrical instruments,
equipment, facilities, components,
products, and systems for commercial,
industrial, and domestic purposes.
producing details of specifications and
outline designs

▪ Direct and coordinate manufacturing,
construction, installation, maintenance
and testing activities to ensure
compliance with specifications, codes,
and customer requirements.
Bricklayers
brickmasons create structures such as walls and
partitions with brick and stone building materials
▪ Prepares the Area
▪ Mixes and Applies Mortar
▪ Laying the Brick
▪ Finishing
▪ Bricklayers must remove excess mortar
from the face of the bricks. Finishing also
includes filling gaps in the mortar that
may weaken the joint
Concrete Labor
Working as member of racially diverse crew in all
types of weather conditions and in all
types of environmental conditions
▪ Preparing the worksite area for
concrete footings
▪ Forming, Tying, and Installing rebar as
illustrated in plan
▪ Measures distance between columns,
using tape measurer
▪ Patches holes, cracks, and
joints using mortar.
▪ ensure proper concrete settling and
surfacing as necessary or as described in
plan

Carpenters
Design and repairs interior and exterior
structures made of wood
▪ Secures furniture for earthquake
preparedness
▪ Monitors work done by outside
contractors for adherence to state
and federal Code Requirements
▪ Installs, repairs and maintains building
roofs.
▪ . Cleans, maintains, adjusts, calibrates
and services equipment used in the
performance of duties
Plumbing
Check building plans and specifications to decide
the plan for plumbing and
related materials
▪ Locate and mark positions for
connections and fixtures
▪ Install, repair and maintain water
treatment equipment, piping and
controls
▪ Install, repair and maintain underground
storm sanitary and water piping systems
▪ Test pipe systems and fixtures for leaks
Architect
▪ design residential and commercial
structures
▪ think about a building’s style, safety and
sustainability
▪ discussing the objectives, requirements
and budget of a project;
▪ consulting with other professionals about
the design of an environment
▪ advising the client on the practicality of
their project
▪ producing detailed workings, drawings
and specifications
▪ preparing applications for planning and
building control departments
▪ project managing and helping to
coordinate the work of contractors;
▪ controlling a project from start to finish

Task 05(P.2.3),(P.2.4)
Line and staff are the most widely used concepts in organizing, and most of the structures have line-staff
structures. Line and staff organization is an organization in which line managers make decisions, and
staff personnel provide advice and support.
Line and staff managers are in an international and interdependent relationship with one another.
Connections are involved in their day-to-day relationships of staff advice, guidance and services to the
line. The line managers are dependent on staff specialists for completing their goals.
The line managers have command authority over their departments. Staff managers have command
authority over their own departments, but they don’t have authority over other managers, line or staff,
outside their own departments. Their function is to give advice and provide service to the line
departments as well as to other staff departments.
Organization structures
Construction organization or any other operating organizations have their own structure. Every
organization needs a structure in order to operate systematically. The organizational structure is a chain
of command of people and its functions for an organization. The structure tells us the value and the
character of the organization. Therefore before you start a construction project get to know and
understand their organizational structure and with that you can get a brief idea about the organization.
In organization there can be departments and teams following some other organizational.
There are 3 types of organizational structures
1. Functional structure
2. Matrix structure
3. Projectized structure
Functional structure
functional structures are helpful for relatively big companies. Workers within the functional
structure are differentiated to play a specific set of tasks . management of this functional group
becomes easy and effective.
communication within the company can be quite inflexible, making the organization slow.
Functional structures are regularly characterized by a large quantity of formalization.
Decision-making power is often centralized at the top of the hierarchy. functional structures

may be most valuable for companies operating. The low cost can be achieved by such companies
due to the efficiencies within functional groups.
Matrix structure
the organization places the employees based on the function and the product.Employees in
a matrix organization report on day-to-day performance to the project manager
They also continue to report on their overall performance to the head of their department.
In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the
functions they belong to and product they involved in

Projectized structure
The project manager has all the power and authority and everybody directly report to the project
manager in projectized organization. Manager process instruction and the team reports the progress
to the manager.These types of organizations are only interested in the project work which is
undertaken for external clients.
most of the organization’s resources are utilized in the project work in projectized
organizations.normally , all personnel working for a particular project are grouped together and are
frequently co-located for the period of the project

Span of control
A span of control means a number of people who are responsible to one manager in a chain of
command. Span of control is a phrase derived from the military organization theory, but it is
used more frequently in business management.
Chain of command
The order in which authority and power in an organization is wielded and delegated from top
management to every employee at every level of the organization. Instructions flow
downward along the chain of command and accountability flows upward.
In an organizational structure, “chain of command” refers to a company's hierarchy of reporting
relationships -- from the bottom to the top of an organization. The chain of command establishes
accountability.
Centralized and decentralized structures
Centralization : is the systematic and consistent resevation of authority at central points in the
organization. Centralized organizational structures rely on one individual to make decisions and provide
direction for the company
The implication of centralization can be :-
• Reservation of operating authority with the middle level managers

• Reservation of decision making power at top level
• Reservation of operation at lower level at the directions of the top level.
Decentralization : is a syetematic delegation of authority at all levels of management and in all of the
organization. Decentralized organizations rely on a team environment at different levels in the business
• Everything that increasing the role of subordinates is decentralization and that decreases the
role is centralization.
• Authority in retained by the top management for talking major decisions.
• Decentralization pattern is wider is scope.
The implication of decentralization can be :-
• Co-ordination to some extent is difficult to maintain
• Operations can be cordinated at divisional level
Advantages of centralized organizational structure
Focused vision
Fast execution
Reduces conflict
Control and accountability
Advantages of decentralized organizational structure
Empowering employees
Relieving the burden
Preparing for emergencies
More efficient decision-making
Ease of expansion
Project-Based Organizational Structure
A project organization is a structure that facilitates the coordination and implementation of project
activities. Its main reason is to create an environment that promotes communications among the team
members with a least amount of trouble s, overlaps and disagreement.

The main objective of the structure is to reduce uncertainty and confusion. The structure identify the
relationships among members of the project management and the relationships with the outside
environment
Basically many businesses are project-based. Specially construction projects. Project-based
organizational structures use from those based on hierarchies, functions and operations. They use a
matrix organization where essential company functions are maintained in a management structure. An
employee can have one manager for project-related work.
A properly designed project organization chart is important to project success. An organization chart
explain where each person is placed in the project structure.
Organizational structures based on projects always change as the projects change. We can get work
done more quickly and efficiently by appointing a project manager and assembling a team of people who
are most suited to the job.
Task 06(P.2.5)
Mission statement
A Mission Statement captures the uniqueness of your company and guides your quality and service
Creating a Mission Statement is not easy work, but because it is so important it is recommended you
have a coach or mentor work with you.
Leaders should emphasize the current mission statement to employees, which explain the purpose and
primary, measurable objectives of the organization. A mission statement is meant for employees and
leaders of the organization.
strategy
A method or plan chosen to bring about a desired future, such as achievement of
a goal or solution to a problem. Strategy is the direction and capacity of an organisation over
long-term, and it is very important for the success of any business organisation.
Change is an essential component of strategic planning. This involves moving the organization forward to
create or change something.
Corporate Planning
Corporate planning is a systematic method to clarifying corporate objectives, strategic decision
making and checking progress toward objectives.Corporate plan is an important document that will

help you continually monitor finances and liabilities, identify opportunities and control your internal
systems and structures.
Main aspects of the corporate planning process are,
1. determining goals for each department of the company
2. assigning responsibility for carrying out the tasks necessary to reach these goals.
Policy
A policy refers to a principle or rule that guides decision making of a company. A policy is based
on the legal framework of the area in which it is relevant.
A policy plays a vital role in performance of companies and organisations, and is developed
mostly by the top management of the company or organization. This is very important in
construction industry.
Purposes of policy
1. To provide good administrative guidance
2. To give directions on what is to be done by an organisation or a group of people
3. Guide the company on the plan of action to be taken when certain things happen
Task 07(P2.6)
We can divide construction projects for 2 main parts
1. Small Scale project
2. Large Scale project
Labours, materials, cost, project duration and all other things are depend on the scale and size
of the construction project. Therefore scale and size is vermy important In construction industry.
Small Scale project
Small-scale project management is the exact type of project management of small-scale projects. These
projects are characterised by features. They are as follows.
1. short duration
2. low person hours
3. small team
4. size of the budget
5. the balance between the time committed to delivering the project itself
6. the time committed to managing the project.

There are only one architect and one quantity surveyor using for small projects. No need to use large
machines and equipments for small projects.Mostly the client has a big responsibility and he has to take a
risk. But the risk is very less comparing with big projects. Final output of the project is in the same way
as large-scale projects.
A simple risk assessment tool should be integral to the planning process and team members can be
encouraged to use the risk assessment as a tool of critical enquiry that will help them identify risk factors
and opportunities as part of a continual.
Risk assessment can easily be combined with an exception planning procedure to manage tolerance to
changes in a project.
For an example let’s say we ae going to build a small house. The estimated cost is 5 million. For that kind
of construction we don’t need number of architects, quantity surveyors, civil engineers or contractors. We
just need one from each position. But all of them have a big responsibility to complete the project
successfully.
Architect has to design the house very well. He cant do changes after the project started. Contractor also
should do his work very well. Otherwise the contractor cannot hand over the house to client at right time.
So everyone have big responsibilities.
Large Scale project
Projects comprising a set of works, activities or services. Large scale project are common in sri
lanka now a days.lots of people involving with construction. There should be more than one
architects, quantity surveyors, civil engineers, project engineers, site managers and project
managers to handle the construction project. It’s a very big job and each and everyone have big
responsibilities and they should have good communication with each other.
In large scale projects,
The Timetable could be set up with indicative deadline for each step
Different types of information required:
• needed to take the decision on the financing of the project
• needed to sign the contract
• needed to implement the project
In large scale projects the roles and responsibilities are bit different than small projects. For an example
in large scale projects site manager has to do so many things. Sometimes he has to do quantity
surveyors job also.
Airport construction, commercial buildings, highway constructions can known as large scale projects.
Lots of people involved in these projects and they all have variety of responsibilities and duties.

Task 08(P.3.1)
When we are going to start a construction project we have to think so many areas before start the project.
First of all site manager will visit the site. After that he has to prepare a site layout. That’s the first thing
that he has to do after visiting the site.
Site layout planning is so important in construction industry. Huge time loss and cost overruns could result
in large projects, where the number of manpower, subcontractors, and equipment involved are high, if
there is no effective and systematic method to site planning.
Figure 01
Resource inputs at the project site which produce outputs in the form of work include: men, materials,
machinery and money.
Location of temporary facilities and a detailed planning of the site layout can allow the management to
make great development by minimizing travel time, and increasing worker morale by showing better and
safer work environment. Site layout helps to identifying, sizing and placing temporary facilities.

Manager has to decide and plan what are the Accommodation facilities that should provide for workers
when the construction going on. Accommodation is so important.
Water facilities, sanitary facilities, medical facilities should provide by site manager.
Special attention to water quality and quantity is absolutely essential. Manager has a responsibility to
provide clean water for workers. Otherwise workers may get variety of deceases or stomach-aches or any
other health problems.
The standards of the rooms or residence facilities are important to allow workers to rest properly and to
maintain good standards of hygiene. This is very important. Manager should provide enough rooms or
space for workers to rest (sleep). Overcrowding should be avoided particularly. These rooms should be
kept clean and in a good condition.
Sanitary and toilet facilities are essential to allow workers to maintain a good standard of personal hygiene
but also to prevent contamination and the spread of diseases. Toilets should have in good conditions.
Task 09(P.3.2)(P.3.4)
What is a Gantt chart?
Gantt chart is one of the most important and useful ways of showing activities, tasks or events displayed
with time. Basically Gantt chart used in project management. Gantt charts take a special place in
construction.

Figure 02
Each activity is characterized by a bar. We can identify so many things by using a Gantt chart.
They are,
1. When each activity begins and ends
2. How ling each activity is planned to last
3. What the different activities are
4. The start and end date of the total project
Gantt charts show additional information about the different tasks or stages of the project. We can take
a good idea of how the tasks connect to each other, how far each task has progressed. Therefore Gantt
chart is a important one in construction.
CPA
It enables the user to gain hands on experience in screen prompts prior to moving onto a more
sophisticated commercial package. the basic functional network routines are enables the user to work
through the program routine in a logical manner in order to become familiar with the system.
Prior to the entry of data into the somputer it is necessary to prepare a data input sheet. This
simplifies the input data procedure and involves transferring each loop of the network in a logical

order to the duration. The user must check that the number of entries matches the number of arrows
on the network diagram.
Figure 03
Critical path analyses can be displayed using circle and arrow diagrams. Circles show
events, they are numbered for identification. Arrows show activities needed to complete
that task. Description of task is written underneath the arrow, length of task shown
above it. All arrows run left to right.
Critical path methodology,
• Calculate the minimum time for each task to be accomplished
• Determines project finish date
• Calculate the minimum time for each task to be completed
• Identify tasks which can be delayed
Planning techniques.
Four techniques are used commonly in construction planning. They are,
1. Bar charts

It is easy to draw and understand and not too searching of managerial skill and it is best used
for straightforward, well understood construction work with simple relationships between the
activities.
2. Network analysis
This is a powerful, logical and analytical technique. It is most effective when used for complicated
projects. This technique is based on drawing and logical relationships between construction
operations.
3. Line of balance
This is a specialized technique for repetitive work. When used to plan, it can be an excellent
means of relating resources, activity durations and the general pace of work on site
4. Linear programmes
This is a specialized technique for linear work.
Most planning techniques point to express the work to be done, to a time-scale, some also include
resources, cost and value. They want to help control time and cost.
The major components of planning techniques are ,
1. Activities
2. Activity duration
3. Project time-scale
4. Event
5. Work method
6. Resources
7. Costs
8. value
Activities: in construction planning this means a job to be done. All the activities should plan before stating
the project
Activity duration: the time required for the achievement of each activity.
Project time-scale: the time structure of the project, it is usual to give each week in the project a number
Event: an occurrence at a specific point in time.
Work method: the plan must be expressed in some logical way, indicating the sequence of operations.
And which activities and events are interrelated
Resources: basically men, machines, materials and money are known as resources. Site accommodation
also can put under resources.

Costs: what the work will cost
Value: what can be earned by payment for work done derived from the BOQ, the estimate or internal
budget.
When we are going to start a construction project, site manager has to do several things. Basically site
manager has to do 3 things, they are,
1. Planning
2. Monitoring
3. Controlling
BOQ
Project manager has to plan lot of things before start the project. He has to make a make a BOQ. Site
manager should has a good idea about the BOQ when the project going on.
Site layout
Site manager has to create a site layout. The site layout is the way the entire site is structured to work
together. There are many ways to link a site together, and a good site will have links that get a
person from one place to another in a logical manner. There should have some features in a site
layout. It might include.
1. Site offices
2. Welfare facilities
3. Car parking
4. Sub contractor facilities
5. Off loading and storage areas
6. Entrances and temporary roads
Temporary services (electrical power, lightening, water distribution and drainage)
All those things should include in a site layout by site manager. Therefore he has a big
responsibility to make a correct site layout.
Cash flow

Cash flow is another important one in construction projects. Site manager has to make a cash
flow for the project. Cash flow planning is the charting of cash movement in to the production
process, then in to accounts receivable and back in to cash. Cash flow is the difference in amount
of cash available at the beginning of a period and the amount at the end of that period.
Figure 04
In order to analyse cash received and cash disbursed, the contractor must have a good
understanding of when it is going to perform various segments or activities that comprise the
project
importance of cash flow
1. Be financially successful
2. Make better use of money
Understanding how your money moves may help you reduce expenses, build financial security and achieve
your financial and lifestyle goals.
Monitoring

Monitoring is supervising activities in progress to make sure they are on-course and on-schedule
in meeting the objectives and performance targets.
Site manager has to monitor all the work. Once building work is under way, there are a number of things
to keep an eye on. How long should the project take who should keep records, and are building
materials being stored correctly?
Sometimes site manager cannot reach to the target on time. Delays you can expect might be due to;
1. The weather
2. Whether the subcontractors are available when needed.
3. Hold-ups with materials
However, when the delays start to get unreasonable you might want to look at your options.
Site manager has to keep a close eye on the quality of the work and pick up problems quickly. For example,
if the wrong wall framing is going in, it needs to be sorted before the wall linings go up.
Manager will need to ensure that,
Plans and specifications are followed.
The house is set out correctly on the site.
Materials are checked off when they arrive to make sure they are what is ordered and required.
Finished construction is protected from the weather.
When the building materials bring to the site Building materials may be in great condition when they are
delivered to the site, but by the time they become part of the structure of the house, they may have become damaged
due to their storage and handling on the building site. Therefore manager should identify damaged materials and he
should ask soppier to bring new materials.
Controlling
Controlling is also an important one in construction projects. Cost control and quality control are the
main parts of controlling. Defects or failures in constructed facilities can effect in very large costs. Even
with minor defects, re-construction may be required and facility operations damaged. Increased costs and
delays are the result of these failures. cost control, the most important decisions regarding the quality of a
completed facility are made for the period of the design and planning stages rather than during construction
Manager has to manage the labours. Sometimes when labours get problems while they are working in a site
manager has to solve the problems and he should give right advices for labours. When a labour gets injured
manager should arrange medical treatments for that labour and manager has to hire another labour from
outside.
One of the big problems on most building sites is the large amount of materials wastage due to varying
circumstances. Some unavoidable wastage is inherent during utilisation. Most problems relating to material
wastage turn around requisitioning and ordering, receipt and checking of deliveries from suppliers,
offloading and handling, storing and protecting, and issuing, distributing and use of materials. Manager

should monitor when materials offloading.
Manager should consider about the budget while the construction going on. Manager has a big
responsibility to covering the monthly budget according to the client’s needs. If the last month
budget was exceeded the limit, manager has to control it from next month budget. Otherwise
project manager cannot work according to the budget. Project manager has a responsibility to
control the budget. Therefore project manager has to focus on controlling, monitoring and
planning.
Task 10(P.3.3)
Estimated cost
A estimated cost is the approximation of the cost of a program, project or a operation. The cost
estimate is the product of the cost estimating process. Basically estimated cost is the budget of the project.
A cost estimate is needed to support evaluations of project feasibility or in support of planning
Actual cost
Actual cost is the total amount of materials, labour costs, and any directly connected overhead costs
that can be charged to a particular project. The actual cost is different from the standard cost.
Difference between estimated cost and actual cost
It’s very important to identify the difference between estimated cost and real cost. Estimated cost is
based on the most accurate information you have at the moment for cost of materials and labours.
The actual cost is what the materials actually cost you when you locked in the price upon placing the order,
the actual man-hours it took to complete the work. Sometimes when we are doing a project the difference
is always hoped to be higher on the estimated cost and lower on actual cost. Its really hard to work
according to the estimated cost.
the actual cost is concerned only with the costs incurred during the course of the project, and not the
units produced.

Comparing the actual cost of construction from a given period to previous periods can also help identify
circumstances where the cost of production is increasing for some reason.
you need to monitor cost control and monitoring enough to where you're keeping costs under control and
under budget by locking in prices at the right time. It’s a responsibility of a project manager. If worker wasting
materials definitely the actual cost will go very high. Make sure your workers aren't wasting materials by
making the wrong cuts.
Cost planning
Cost planning is an important part in construction industry. Before we start a project we should make a cost
plan. Cost planning tells a client how much a proposed project will cost. As well as it will tell when the
excepted expenses will most likely occur. Without cost planning client would enter blindly into construction
project and finally there may be a project failure.
After the owner has set a maximum cost, cost planning will determine whether that cost cap can be met.
Basically cost planning involves 2 features. The first one is an overall budget for the project. This one is
based on the current project scope and design
The second feature is the allocation of costs over time. This involves expecting when along the project
schedule costs will actually be earned and paid.
Benefits
• client is aware of financial expectations
• Allows client to secure the proper financing and business plan
• Allows client to properly structure a construction loan
• Allows client to avoid paying interest on the balance until it is received
Client would not be knowif a project is expected to be profitable without cost planning
We do cost planning 3 times before start a project. Once at projects initial foundation, once after the
preliminary design is complete, and once after the final design is permitted.
We can plan and estimate the construction costs. But they also can change radically during the
programme of actual construction
Cost controlling

The cost control is a process that should be continued through the construction period to make
sure that the cost of the building is kept within the agreed cost limits. We can divide cost control
in to 2 areas
1. The control of cost during design stage.
2. The control of cost by the contractors once the construction of project has started.
The most important purpose of cost control is to gain the maximum profit within the selected
period and acceptable quality of work.
Most project managers find difficulty in controlling cost on their construction sites due to some
problems.
➢ Over budgeting
➢ Poor materials wastage of materials
➢ Unexpected weather changes
➢ Poor project preparation
➢ Poor communication
Cost control can be achieved by selecting the right man for the right job, the right equipment and
tools for the right work and the right quality of materials, in the right quantity, from the right source,
at the right price and delivered at the right time. This is so important and if a site manager can
select the right person at the right time client will able to see a good outcome.
There are seven cost control techniques used by contractors on sites. Schedules, site inspection,
the project budget, meetings, cost and work progress records and reports, monitoring work and
cost performance and evaluation using bills of quantities.
For an example let’s say actual cost will be 4.2 million after 4 months. But for the 5 th month
manager has only 0.3 million. Manager cannot exceed that limit on 5 th month. So now manager
has to give a special attention on expenses and he should have to control the cost.
Cash flow
Cash flow technique has been widely used by construction companies for a long time. Cash flow
is one of the most common cash forecasting and cost control technique. Basically cash flow is a
financial model which is necessary to count the demand for money to meet the project cost.
cash flow describe the payment and revenues of the single project or whole company per time
and reflects their present and future situations by representing net cash conditions.
Importance of using cash flow in construction industry.
• Give chance for displaying the financial risk of the project.

• It provides cash management strategies in order to plan, monitor and control the cash
shortage
• it is a useful tool for capital budgeting practices in decision - making process during making
new investments
• It is required for describing financial situation of the whole company
• It summarizes and gives a snapshot of the whole picture of the financial situation of the
project
• easy to understand by users
activity duration Value of work
A 1 40
B 2 100
C 3 220
D 4 80
E 3 120
F 4 250
G 1 30
840
This shows a simplified precedence diagram for the construction phase of a building project
together with a schedule showing the duration and value of work for each activity. The contract
provides for monthly valuations. Payment for work executed in one month is received by the
builder in the next month.
Task 11(P.3.5)(P.3.6)
Quality standards
The construction industry is a main division in many national economies, and often the largest
employer. Additionally to the construction of buildings and transportation, it provides services and
products for export worldwide. ISO standards provide the sector with solutions for all aspects of its
activity.
ISO involves all stakeholders, from architects to designers, engineers, owners, product manufacturers,
regulators, policy makers and consumers. ISO standards also address vital and topical issues such
as accessibility.
Sustainable construction
While standard building practices are guided by short term economic considerations, sustainable
construction is based on best practices which emphasize long term affordability, quality and
efficiency. ISO 2004 sustainable construction is very important in construction industry. A building

designed and constructed in a sustainable way minimizes the use of water, raw materials, energy,
land .
Statutory compliance
Manager should know how to ensure the safety of works. Its is very important. Employers should
organise training programs for employees on how to identify, report, mitigate and respond to risks at work.
The occupational safety goals, programs, policies, plans and procedures of companies need to be documented
and shared with employees.
Train security staff and managers to recognize signs. Site manager should install safety and facility aspects
boards. All the workers should wear safety helmets and other safety equipments before they starting the
work. Manager should check them before start the work in every day.
Communication and Liaison Activity
Communication process takes an important part in any kind of construction. There always should
be a good communication between site managers and workers. Otherwise managers cannot
control the project. In some constructions we have to use variety of communication techniques.
Because when we do a road construction sometimes we cannot hear what the other workers
talking. So we should use walky-talky. Manager should provide walky-talky for workers In such
situations.
For an example let’s say we are going to build a 10 storied building. When we build it imagine
now I’m in the 8 th floor. I want to give a message for site manager. But the site manager is in
ground floor. Now I can’t go to the ground floor to giving the message. Therefore we should
provide walky-talky or any other facility to communicate with other workers. It’s really helpful for
workers to do their work easily. Therefore good communication techniques should install in a site.
Task 11(P.3.4)(P.3.6)
Quality standards and statutory compliance are playing huge roles in construction industry. . The
success of A construction is based on these two elements.
Quality standards
Quality standards provide for a construction company to manage its process and activities in
proper way and level. Its really important in construction industry. They provide a fortunate
position of satisfying client’s requirements.
ISO 2004 is the international standard for quality management and quality assurance.there are
some factors which can have an influence on the quality of a product or a service provided by an
organization. They are as follows,
✓ Work patterns

✓ Job descriptions
✓ Inspection and testing
✓ Reporting relationships
✓ Policies and procedures
✓ Design
✓ Purchasing
✓ Management
✓ Record-keeping system
✓ Inventory control
✓ Training
✓ Customers
✓ Technologies
✓ Resources
✓ Planning methods
ISO 9000 has three main standards. They are,
1. ISO 9000- part 1 Selection and Use
provides the guidance for implementation and application of the quality assurance standards
2. ISO 9000- part 2 Application Guidelines
Provides the guidelines for the selection and use of the a variety of standards and clarifies the
main quality concepts.
3. ISO 9000- part 3 Software
Deals with computer software. This standard identifies that the process of development,
4. ISO 9000- part 4 Dependability
deals with the reliability, maintainability and availability of input resources for the processes
involved in any production
Statutory compliance

health and safety combined with statutory compliance and they are based on risk assessment
forms. There are number of regulations under the health and safety. There are some regulations
in risk assessment and management.
• The construction regulations( health and safety)
This regulation rules on all the parties who are involved to the construction process
• The management of health & safety at work regulation
This is covers up a wide area of hazards including safe place of works, cofferdams and caissons,
temperature and weather protection and lighting
• The construction regulation (design and management)
This is require that the risk associated with any hazardous work activity are measured before work
starts so that necessary avoidance and defensive measures identified and put into correct place
Q12
What is a construction contract?
A construction contract is a legally binding agreement between two parties on the details and cost of
a construction project. This kind of contract covers very expensive, complex projects and simple
renovations. There are two types of clients that use construction contracts: residential and commercial.
Each client has different requirements that decide what is included in the contract.

What constitute a contract?
All agreements are contracts if they are made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not hereby expressly declared to be
void.
Element of contract
• Offer
• Acceptance
• Intention to create legal relation
• Consideration
• Capacity
• Consent
• Legality
Rights and obligations
A contract is an agreement between two parties which is binding in law. Rights and obligations
address the assertion of whether the entity holds or controls the rights to assets included on the
financial statements, and that liabilities are obligations of the entity.
Rights and obligations of the involved parties of a contract may be assigned by third party. . The
person who is responsible for assigning his or her rights or duties is called as assignor and the
person who is received rights is known as the assignee.
What is procurement?
“Procurement” is the overarching function that describes the activities and processes to acquire goods
and services. Importantly, and distinct from “purchasing”, procurement involves the activities involved
in establishing fundamental requirements, sourcing activities such as market research and vendor
evaluation and negotiation of contracts
Procurement methods
Traditional (lump sum) - This method is the most popular among small and middle sized construction projects. he
constructor works according to a detailed plan provided by the investor.
Design & Build- this method is becoming more and more popular in middle sized and larger projects. it force the
contractor to undertake a large part of project works.

Construction Management- it is applied especially in technologically complex projects, where fast completion is
essential. They are not directly responsible for subcontractors.
Procurement methods are many, and they go by different names depending on the procurement
category. Some of them are,
• Open Tendering,
• Restricted Tendering,
• tendering,
• Restricted Tendering,
• Request for Proposals,
Of the above-mentioned procurement methods, tendering, request for proposals, and two-stage
tendering are considered competitive procurement methods because the solicitation documents are
advertised and open to any qualified firm interested in competing for the assignment
Lump Sum contract basics
Most of small projects are carried out under traditional form of procurement, Lump Sum. A detailed plan should be
provided by the investor or their planning team and supplied to the contractor prior to cost estimate preparation.
It is important that all doubts and errors in documentation are identified by the contractor at the time of preparing the
tender.
There is a possibility to partially transfer of design duties to the constructor. It can be done by using adequate contract
form.
Task 13(P.4.3)
Latham report
The construction industry in the UK has every time performed in a way that is thought to be
wasteful compared to other industries. There is a general idea that it does not deliver
good value for its customers.
In 1994 the Latham Report 'Constructing the Team' was published. Latham proposed that
the client should be at the centre of the construction process and that the industry should

move away from its adversarial structure, assuming a more integrated method with
greater collaborating and teamwork.
There were a great number of detailed recommendations within the report.
• There should be legislation to prevent ‘set off’.
• There should be greater standardisation
• There should be better integration of contract documents.
• Public sector registers should be established for approved contractors, sub-
contractors and consultants.
Latham suggested that if the full range of measures described in the report were adopted,
savings of 30% could be achieved over five years.
There are two methods that we can do a construction
1. client can lead the project. Contractor has just to do the construction project according to
client’s needs and wants. He don’t need to bring materials or he don’t need to hire equipments
for the site. All the things will be given by the client. Contractor doesn’t need to design the
project or he doesn’t need to worry about anything. He just has to do the project. Client will
supply materials, equipments, architects, quantity surveyors and everything. Contractor
doesn’t need to make a BOQ. Design of the building, BOQ and all other things will be given
by the client. This method is very important to client. Because client can reduce the cost by
using this method.
2. all the things will be done by the contractor. Client has just to pay for contractor. Contractor
will provide labours, Materials, equipments and all other things. Client doesn’t need to worry
about anything. Contractor will do the project and he will handover it to client. But in this
method sometimes client don’t know the materials are in good conditions or the quality of
materials. So contractor can build by using any kind of materials. This method is important
for contractor. Because contractors have connections with others and they can get everything
quickly and they can order materials for whole sale price. So contractor can save money from
ordering materials.
But some contractors don’t think of the project. They just want to finish the project and take
their money. Some Contractors don’t use quality materials when they do projects. They use

law quality materials and the client doesn’t know about that and he pays money for the actual
price.
Differences between these methods.
(1) (2)
Use High quality materials Use Low quality materials
Low cost High cost
Time management is very well Time management is not so good
Wasting materials are very less Wasting materials are very high
Task 14(P.4.4)
Best practice
A set of guidelines, or ideas that represent the most efficient or practical course of action.
Best practices are often set forth by an authority, such as a governing body or
management, depending on the circumstances. While best practices generally determine
the recommended course of action, some situations require that such practices be followed.
Benchmarking
Benchmarking is simply the comparison of one organization’s practices and prominences
against those of others. It seeks to identify standards, or best practices to apply in measuring
and improving performances.
Basically benchmarking is a quality improvement tool. It identify some kind of things. They are,
• What are you doing
• How you’re doing it
• How others do it
• How well you’re doing it in reference to measure
• What and how to improve
Organizational working practices that encourage collaboration might include:

➢ Financial motivation
➢ Clear lines of communication and authority
➢ Co-location of team members
➢ Protocols for the preparation and dissemination of information
➢ Early warning procedures
➢ Social activities
Task 15(P.4.5)
Construction industry is one of the large industries in the world and thousands of people involved in construction
industry and it really help to the economy of a country.Sustainable construction aims at reducing the environmental
impact of a building over its entire lifetime, while optimizing its economic viability and the comfort and safety of its
occupants.
With the continued growth of the global economy and population, the major players in
the building industry such as the clients, designers, quantity surveyors and the builders will have to face
the challenges of meeting the demands for new and existing facilities that are environmentally friendly,
socially acceptable and economically attractive.
Sustainable construction is the catalyst to maintain a sustainable development that achieves the
triple bottom-line of environmental, social and economic aspects. It is more important to change
the thoughts about the monetary advantages, and set up a proper system to have a good
economical level
Environmental Costs
One of the most common barriers to sustainable construction is that there is a common
misconseptionthat-green buildings will cost more than conventional buildings and that
only capital cost is considered.
Therange of construction activities and the input of large amount of resources have placed atre
mendous pressure on the industry to improve its image from ―Bricks and Mortar.
Some of the main issues are,
• Indoor Air Quality
• Energy efficiency
• Reduce the impacts of natural resources consumption

• Water efficiency
• Reduction of carbon emission
There are few methods which are set about to keep on sustainability of a building.
➢ Energy efficiency and insulation
➢ Resource efficiency
➢ Maintenance efficiency
➢ Eco-friendly construction methods and techniques
➢ Use of Sustainable materials
Advantages of sustainable construction are,
Contribute to overall quality of life
Reduce solid waste
Reduce operating cost
Use resources more efficiently
Improve air, thermal and acoustic environments
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Introduction
Management is a set of activities including planning, decision making, organizing, leading and controlling
directed at an organization’s resources(human, financial, physical and informational) with the aim of
achieving organizational goals in an efficient and effective manner.
.management has lots of stages an organization is a combination of all these things. In an organization
each and every member has responsibilities and they have to work as a team.
Management consultants help organisations to solve issues, create value, maximise growth and improve
the business performance of their clients. They will identify options for the organisation and suggest
recommendations for change, as well as helping with additional resources to implement solutions.