Cem504 1

©M. S. Ramaiah University of Applied Sciences
1
Faculty of Engineering & Technology
Module Code: CEM504
Module Title: Resource Management in Civil
Construction
Module Leader:
Shrihari Naik
shriharikn.ce.et@msruas.ac.in
Session 1: Resource Planning
Delivered by: Shrihari Naik

2
Session Objectives
At the end of this session, student will be able to:
– Explain the types of resources involved in construction
– Explain the concept of resource planning
– Describe the procurement process
– Discuss the steps involved in identifying the resource
requirements

3
Contents
Types of resources- manpower, equipment, material, money and
time; Resource planning, procurement, identification, personnel,
planning for material, labour, time schedule and cost control; Systems
approach in resource management, characteristics of resources

4
Types of Resources
• Manpower
• Equipment
• Material
• Money
• Time

5
Types of Resources - Manpower
• Maximum employment
• No job security
• Legislation is required for the following reasons
– Terms of employment
– Proper working conditions
– Social security

6
Types of Resources – Manpower – contd..
Types of labour:
Skilled labour Unskilled labour
Masons Majdoors
Carpenters Beldars
Painters Bhisti
Electricians House keeping labour
Plumbers Helper
Material shifting labour

7
Types of Resources – Manpower – contd..
• Safety manual has to be maintained
• Trade unions should be established
• Safety department – insurance of workers
• Proper training – heavy machines
• Basic facilities should be provided

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Types of Resources - Equipment
Purpose of equipment:
• Reduce the number of labour
• Reduce time
• Increase the effectiveness
Equipment selection:
• Purchase or hire the equipment
• Purchase – equipment needed for the entire project

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Types of Resources – Equipment – contd..
Equipment selection: contd..
• Hiring – cost of equipment is high
• Equipment available at the construction site
• Use of standard equipment
• Availability of spare parts
• Suitability of local labour

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Types of equipment:
• Earth moving equipment
– Excavation
– Earth compaction
• Hauling equipment
• Hoisting equipment
• Conveying equipment

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Types of equipment: contd..
• Pile driving equipment
• Tunnelling and rock drilling equipment
• Pumping and dewatering equipment
Equipment management checklist:
• Economy of production, quality and speed of construction
• Buying, hiring and leasing

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Equipment management checklist: contd..
• Size and number of equipment
• Petrol / diesel / electric
• Suitability for local conditions
• Mobile or stationary equipment
• Finance of purchase

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Equipment management checklist: contd..
• Examine the warranties while purchasing
• Information on deficiencies / defects
• Method statement of equipment used
• Trained personnel for operation
• Regular preventive maintenance, suitable access roads and
foundation for equipment

14
Types of Resources – Materials
Classification
1. Cementing Materials
– Lime
– Cement
– Mortar, etc.
2. Solid Materials
– Stones
– Bricks
– Iron
– Timber

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Types of Resources – Materials – contd..
Classification – contd..
3. Protective Materials
– Paints
– Varnishes
– Plaster, etc.

16
Purchase:
• Quality specification, quantity required, timing of requirement
• Locate the suppliers, place the orders, procure the materials
• Indents are prepared – item code, specification, quantity required,
and time – checked by store personnel – prevent unnecessary
buying
• Authorized persons – requisition of purchase of materials –
purchase manual

17
Transportation:
• Buyer’s premises to seller’s premises
• Sales tax and octroi
• Check posts
• Co-ordinate with rail, road, ship etc. – lowest rates and earliest time

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Delivery and Distribution:
• Carried on by inspection
• Customer satisfaction – quality of the product
• Checking – quality control department
• No satisfactory results in inspection – delay in distribution

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Types of Resources - Money
Money Management:
• Process of managing money
• Investment, budgeting, banking and taxes
• Investment management
Financial analysis of a project:
• Estimation of capital cost requirement
• Source of financing

20
Types of Resources – Money – contd..
Main elements of capital cost:
• Engineering and project management cost
• Construction materials, manpower, and equipment costs
• Management and supervision during construction
• Land acquisition and construction financing
• Inspection and testing

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Sources of financing:
• Equity capital
• Preference capital
• Secured debentures
• Term loans
• Capital subsidy and development loans

22
Financial Accounting Systems:
• Accounting information
– Internal reporting to the managers – day-to-day planning,
monitoring and control
– Internal reporting to the managers – aiding strategic plan
– External reporting to owners, governments, regulators and
outside parties

23
Cost Control:
• Cost control document – recording financial transactions and giving
an indication of progress and problems
• Financial performance of the project
• Keeping the project under financial control
• Materials used and labour inputs within each job

24
Types of Resources - Time
Importance:
• Effective management and administration of contract time
• Enhance the odds of successful project outcome
• Basic understanding of:
– Critical path scheduling techniques
– Delay and how it occurs
– Pros and cons of various scheduling techniques

25
Types of Resources - Time
Delay:
• Early attention and timely action
• Identify the party responsible for the delay
• Corrective action plan
• Establishment of an effective method of inquiry
• Timely and independent assessment of changes and delay issues

26
Resource Planning
Introduction
• Construction projects are more complex than ever before
• Judicious scheduling and allocation of available resources
• Important project resources – manpower, equipment, and
materials
• Supply and availability – seldom taken for granted

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Resource Planning – contd..
Introduction – contd..
• Seasonal shortages, labour disputes, equipment breakdowns,
competing demands, delayed deliveries, etc.
• Meeting time schedules and cost budgets – work must be supplied
with necessary resources
• Basic objective of resource planning – supply and support field
operations

28
Introduction – contd..
• Responsibility of the Project Manager – identify and schedule
future job needs
• Determining long-range resource requirements for general planning
and short-term resources for detailed planning
• Modification of project plan and schedule – supply problems

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Human Resource Planning
• 3 major categories
– Office personnel
– Construction personnel (field supervision and labour)
– Construction subcontractors
• Contractor’s personnel – a key to successful contracting
• Construction managers – staffing the projects – personnel planning

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Human Resource Planning – contd..
Theoretical Personnel Loading Curves

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Theoretical Personnel Loading Curves – contd..

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Practical Personnel Loading Curves

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Practical Personnel Loading Curves – contd..

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Planning the Construction Project Personnel
• Detailed craft loading curves and field supervisory team
• Consider office support personnel – relatively small in number –
loading curves are not practical
• Number of labour-hours for each craft – construction cost estimate
• Curve – number of people required to carry out the craft’s work

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Planning the Construction Project Personnel – contd..
• Number of people =
Manhours for that week
Total hours in the work week
• Composite total craft personnel count
• S-curve – developed from total personnel plot – track the overall
construction team’s progress – control phase of the project
• Start and finish dates – project schedule

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• Composite curve – sharp peak – overcrowded condition on a
limited-access job site
• Actual curve – tends to roll to the right – late project finish
• Craft personnel peak-shaving
• Using early start and late finish dates on non-critical activities

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• Very large construction projects – total elapsed time is great
enough to have multiple personnel peaks
• Possibility of rolling to the right – super peak
• Using personnel peak-shaving is very critical
• Use of construction subcontractors

38
Planning Field Supervisory and Staff Personnel
• Field personnel – field supervision and craft labour
• Field supervision labour hours are very low compared to the craft
labour hours
• A simple list of the staff and their proposed duration of assignment
• Number and quality of the field supervisory staff

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Construction Subcontracting
• Problems of communications, cost control, and quality – relatively
easy to handle
• Prime contractor’s field supervisors – available full-time
• Supervise the activities of subcontractors – conformance to
schedule, progress payments, and change orders

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Construction Subcontracting – contd..
• Mutual respect and project goal participation among the field staff
and the subcontractors
• Discuss problems with the management
• Make personnel changes if necessary

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Construction Material Resources Planning
• Report resulting from the plan – division of procurement
responsibility, bulk materials, and subcontracts
• Survey of current market conditions, pricing trends, bulk materials
availability, and vendor lists
• Formulating project material resources plan and the project
schedule

42
Construction Material Resources Planning – contd..
• Important ---> required material and equipment needs for the
contract be covered in the plan
• Project success – availability of proper equipment and materials –
support the project schedule
• Today’s materials plan – detailed document listing – account code,
quantities required, description, date, responsible supplier, etc. –
computerized database

43
Long-delivery Materials
• Important planning areas
– Long-delivery equipment
– Special materials and alloys
– Common materials in short supply
– Services and system requirements
– Transportation systems

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Long-delivery equipment – contd..
• Construction Manager – early review of project’s physical resources
• Special attention to the items on the critical path
• Preserve available schedule float
• Prevent from slipping into negative float

45
Special Materials and Alloys
• Review all materials specified – normally not stocked – special
nature
• Special treatment – casting, welding, and testing – delay in delivery
• Technical staff or consultants – thorough investigation of potential
delivery problem areas

46
Common Materials in Short Supply
• Structural steel, concrete, and reinforcing bars
• Planned for and delivered on time – to meet the schedule
• Not to be overlooked on large projects

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Services and Systems
• Critical on large projects
• Project scheduling, accounting, cost-control, and administrative
systems
• Necessary manual or computerized project-control systems
effectively implemented

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Services and Systems – contd..
• Computers – hardware, software, and communication resources
planned and implemented
• Some items will fall on critical path and some will not
• Critical items – discovered early

49
Transportation Systems
• Large construction projects – international flavour – site location or
purchasing sources
• Special case – prefabricated elements – special loading,
transportation, and receiving facilities
• Significant amount of imported materials – overall marshalling of
shipments, import licenses, custom regulations, dockside security,
and invoicing – purchasing manager

50
Transportation Systems – contd..
• Materials management plan – legal and quasi-legal factors – getting
goods on time
• Construction Manager – review the complete plan – assure field
construction needs are supported

51
Procurement
The Procurement Process
1. Define Business Need
2. Develop Procurement Strategy
3. Supplier Evaluation and Selection
4. Negotiation and Award of Contract
5. Induction and Integration

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Procurement – contd..
• Fundamental requirements
• Understand the difference between a requirement and a solution
• Outsourced solution

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• Scale of project
• Wide range of potential solutions and approaches
• Market research
• Supplier selection

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3. Supplier Selection and Evaluation
• Evaluate the available solutions
• Formal tender process or online auction
• Criteria for comparing different solutions and suppliers
• Giving weightages to the criteria

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4. Negotiation and Award
• Detailed negotiations are undertaken
• Considering carefully the process by which the goods or services
will be ordered and approved
• Considering the whole Purchase to Pay (P2P) process

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• No goods or services should be ordered or delivered until the
contract is signed
• P2P process – to be in place – to be understood on both, buyer side
and supplier side
• Service levels – measured and KPIs put in place
• Regular reviews

57
Identification
Steps involved in identifying the resource requirements
1. Review the project scope and activities/ tasks list
– Project’s requirements for people, equipment and material
resources
2. Gather historical information
– Old project files, databases, and people
– Similar projects
– Types and number of resources, duration of tasks

58
Identification – contd..
Steps involved in identifying the resource requirements –
contd..
3. Consider how resource quantities, capabilities, and quality affect
the duration of the activities
– Collect information
– Project in hand
– Similar projects
– Refine the duration estimates

59
contd..
4. Identify the resource types and quantities needed
– Labour (or Human Resource)
– Equipment
– Material

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contd..
5. Ask for an expert’s judgement
– Present the resource requirements – individual expert or a
group of experts
– Assess and advise on suitability and appropriateness

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contd..
6. Examine the adequacy of resources
– Examine the sufficiency of internal resources – in terms of
quantity, skills, experience and expertise
– Result of adequacy examination, organizational policies
regarding staffing, and the rental and purchase of supplies and
equipment
– External resources

62
Systems Approach in Resource Management
• Collection of interrelated parts acting together – achieve
some goal
• Set of objects working together with relationships
between the objects and their attributes related to each
other and to the environment
• System – management – set of different independent
parts working together in interrelated manner – set of
objectives

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Systems Approach in Resource Management –
contd..

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contd..
Elements of Systems Approach
• Organization – unified and purposeful system – interconnected,
interacting and interdependent parts
• Subsystem – influences other sub-systems and the system as a
whole
• Position and function – analysed and understood – to other sub-
systems and to organization as a whole

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contd..
Elements of Systems Approach – contd..
• Sub-system – strength – association and interaction with the other
sub-systems
• Collective contribution of the organization – greater than the
aggregate of individual contributions – synergy
• Boundary – separation from environment – internal and external
parts to organization

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contd..
Elements of Systems Approach – contd..
• Reaction or response of the environment to the output – feedback
– evaluating and improving the functioning of the system
• Operation of organizations – several alternative ways of doing the
same thing or achieving the same goal

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contd..

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Characteristics of Resources
• Three main characteristics
– Utility
– Limited availability
– Potential for depletion or consumption

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Summary
• Types of resources
– Manpower
– Equipment
– Material
– Money
– Time
• Basic objective of resource planning – supply and support
field operations

70
Summary – contd..
• Responsibility of the Project Manager – identify and
schedule future job needs
• Determining long-range resource requirements for
general planning and short-term resources for detailed
planning
• Modification of project plan and schedule – supply
problems

71
Summary – contd..
• Number of people =
Estimated hours to be expended that week
Hours in the work week
• Procurement process
3. Supplier Evaluation and Selection
4. Negotiation and Award of Contract

72
Summary – contd..
• Steps involved in identifying the resource requirements
– Review the project scope and activities/ tasks list
– Gather historical information
– Consider how resource quantities, capabilities, and quality affect
the duration of the activities
– Identify the resource types and quantities needed
– Ask for an expert’s judgement
– Examine the adequacy of resources

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