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Chapter Introduction Construction engineering and management Source: O Mon Thermal Power Plant Project ©2013 Đỗ Thị Xuân Lan , GVC Ths Chapter Introduction 0.1 The construction industry 0.2 The construction process 0.3 Codes and regulations 0.4 Construction cost 0.5 Construction management ©2013 Đỗ Thị Xuân Lan , GVC Ths THE CONSTRUCTION INDUSTRY Increased rate of GDP from 1995-2011 9.54 9.34 8.44 8.10 8.46 8.23 7.79 6.71 7.34 7.08 6.87 6.78 6.31 5.89 5.76 5.32 4.77 95 96 97 98 99 00 01 02 03 04 05 ©2013 Đỗ Thị Xuân Lan , GVC Ths 06 07 08 09 10 11 Source: http://www.gso.gov.vn Gross value of construction/GDP 1995-2011 ©2013 Đỗ Thị Xuân Lan , GVC Ths Increased rate of Gross value of construction1995-2011 ©2013 Đỗ Thị Xuân Lan , GVC Ths THE CONSTRUCTION INDUSTRY • Construction is a important industry The price of every factory, office building, hotel or power plant must be charged for the goods or services produce in it or by it (from “More Construction for the Money”, Summary Report of the Construction Industry Cost Effective Project, January, 1983, cited in “Project Management for Construction” by Hendrickson C., 2008) ©2013 Đỗ Thị Xuân Lan , GVC Ths THE CONSTRUCTION INDUSTRY • The construction industry is one of the largest industries • Construction is an exciting, dynamic process which often provides high income for workers and contractors • The technical aspect of construction is extremely important, it is also essential that construction professionals have knowledge of the business and management ©2013 Đỗ Thị Xuân Lan , GVC Ths Construction Contractors • Construction contractor: a person or a company who has agreed to perform a defined scope of work in accordance with the contract documents and terms of the contract • Types of contractors: – General Contractor and Specialty Contractor – Prime contractor and subcontractor ©2013 Đỗ Thị Xuân Lan , GVC Ths CONSTRUCTION MANAGEMENT • Elements of Construction Management - Skillful construction management results in project completion on time and within budget - Scope of construction management: construction contracts, construction methods and materials, production and cost estimating, progress and cost control, quality control and safety ©2013 Đỗ Thị Xuân Lan , GVC Ths 39 CONSTRUCTION MANAGEMENT • Elements of Construction Management – Poor construction management: • Project delays increase labor/equipment cost, cost of borrowed funds • High material costs • Increased subcontractor cost and poor relations • High insurance cost • Low profit or a loss on construction volume ©2013 Đỗ Thị Xuân Lan , GVC Ths Elements of Construction Management • Skillful construction management results in project completion on time and within budget • Scope of construction management: construction contracts, construction methods and materials, production and cost estimating, progress and cost control, quality control and safety ©2013 Đỗ Thị Xuân Lan , GVC Ths CONSTRUCTION MANAGEMENT • Quality Management – All construction project steps must be taken to ensure that the constructed project meets the requirement established by the designer in the project drawings and specifications – More recently, the term quality management (QM) and Quality Assurance (QA) have been adopted to include all aspects of producing and accepting a construction project which meets all required quality standards – Quality management includes such activities as specification development, process control, product acceptance, laboratory and technician certification, training and communication ©2013 Đỗ Thị Xuân Lan , GVC Ths • Quality control (QC) which is a part of the quality management process, is primarily concerned with the process control function • The contractor will performed the quality control so that quality control is most effective ©2013 Đỗ Thị Xuân Lan , GVC Ths • In recent years, there has been increasing use of statistics-based methods for quality assurance when the results of all construction process are products which vary over some statistical distribution - Ensuring that all elements of the work have an equal chance of being included in test samples - Verifying that test samples taken by the contractor and by other parties come from same population - Analyzing the variation in test results of material and processes sampled - Establishing acceptance levels of variation in sample results ©2013 Đỗ Thị Xuân Lan , GVC Ths CONSTRUCTION MANAGEMENT • Safety and Health - Construction is inherently a dangerous process - The following construction operations have been found to account for the majority of serious construction injuries: • Concrete construction, especially construction of formwork, placing concrete into formwork, and failure of formwork during construction • The erection of prefabricated trusses, precast concrete elements, and structural steel • The construction and operation of temporary facilities including scaffolding, construction plants, lifts and storage facilities • Working from elevated positions resulting in falls • Construction equipment operations ©2013 Đỗ Thị Xuân Lan , GVC Ths CONSTRUCTION MANAGEMENT • Organization for Construction (There are probably as many different forms) FIGURE 1-10 Representative construction company organization chart ©2013 Đỗ Thị Xuân Lan , GVC Ths CONSTRUCTION MANAGEMENT • Reasons for Construction Company Failure – Lack of capital – Poor cost estimating – Inadequate cost accounting – Lack of general management ©2013 Đỗ Thị Xuân Lan , GVC Ths The tower crane collapsed at the office building construction site 72-74 NTMK St on 27 Dec 2007, ©2013 Đỗ Thị Xuân Lan , GVC Ths 48 Source: OSHA ©2013 Đỗ Thị Xuân Lan , GVC Ths 49 Steel structure of a 30.000 m2 warehouse in Binh Duong collapsed on 23 Jan, 2010 ©2013 Đỗ Thị Xuân Lan , GVC Ths 50 1st floor collapsed at a residential bulding in Tân Xn, H Hóc Mơn, 24/04/2007 ©2013 Đỗ Thị Xuân Lan , GVC Ths 51 Finishing scaffolding collapsed at Mulberry Lane building , Mỗ Lao, Hà Đông, Hà Nội on 21/02/2012 ©2013 Đỗ Thị Xuân Lan , GVC Ths 52 Ba Dau Steel Bridge in Binh Son, Quang Ngai collapsed on 26 Nov, 2011 ©2013 Đỗ Thị Xuân Lan , GVC Ths ... construction â2 013 ca Th Xuõn Lan , GVC Ths ©2 013 Đỗ Thị Xuân Lan , GVC Ths 18 Source: http://dddn.com.vn/2 011 112 109486358cat 111 /thong-xe-duong-ham-dim-dai-nhat-dong-nam-a.htm ©2 013 Đỗ Thị Xuân... GDP from 19 95-2 011 9.54 9.34 8.44 8 .10 8.46 8.23 7.79 6. 71 7.34 7.08 6.87 6.78 6. 31 5.89 5.76 5.32 4.77 95 96 97 98 99 00 01 02 03 04 05 ©2 013 Đỗ Thị Xuân Lan , GVC Ths 06 07 08 09 10 11 Source:... http://www.gso.gov.vn Gross value of construction/GDP 19 95-2 011 ©2 013 Đỗ Thị Xuân Lan , GVC Ths Increased rate of Gross value of construction1995-2 011 ©2 013 Đỗ Thị Xuân Lan , GVC Ths THE CONSTRUCTION