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CE15 Report Part 2.pptx

  2. 8-1 REDUCING TIME AND COST The activity time for project constructions are normally estimated for some given level of resources. Project construction time is influenced by the following: 1. To avoid penalties for not completing the project on time 2. .To take advantage of monetary incentives for completing the project on or before the target. 3. To free the resources such as money, equipment and men for use on other projects. 4. Reduce indirect costs associated with project such as :
  3. A fourth key aspect is the process by which decisions are made in these areas. So a fourth key area is: . 1. Decision-making techniques (Chapters 10 and 11)
  4. 1.3 Strategic management Chapter 2 aims to explain the role of corporate strategic management within the construction industry. It traces the evolution of strategic management thinking through succeeding schools of thought from the 1960s to the present day. The chapter thus presents a comprehensive overview of strategic management theory and practice.
  5. Chapter 3 is specifically concerned with strategic management systems or the ways in which strategy is developed within organizations. Three pure systems, strategic planning, strategic vision and strategic learning, are shown to be points on a continuum of strategic decision-making.
  6. 1.4 Managing People Three key aspects of managing people in this industry are dealt with in the next three chapters. Industrial relations legislation and trades union power have always been undermined in the construction industry by the widespread use of labour only subcontracting. Chapter 4 argues that the formal industrial relations systems have had to be adapted to the unique construction environment but still have a contribution to make in protecting workers, establishing minimum pay levels and representing the industry at government level.
  7. The crucial aspect of health and safety of construction people is addressed in Chapter 5. It is argued that safety issues do not just start once site activities commence but that designers have a duty to design for safe production. An understanding of the health and safety regulations is seen as a minimum requirement, which must be translated into safety policies, attitudes and activities by senior management. 6 Construction Management in Practice.
  8. Obtaining and developing people for construction firms is the subject of Chapter 6. The mapping and matching of a company's human resources to its strategic plans is a vital role for senior management. A formal system for inducting, developing and training people at all levels is a key part of a company's human relation's strategy. The creation of a genuine learning organization is still an aspiration for most construction firms but a process is presented whereby it may be achieved.
  9. 1.4 Managing Money Chapter 7 deals with the financing of business units. As stated earlier the construction industry is a large project-based industry of small firms; this has implications for the types of business units which exist and for the sources of capital which operate. Short-term capital requirements are particularly important to contractors. The capital structure of the firm is clearly a strategic decision which senior management must determine.
  10. Monitoring and managing finance is the subject of Chapter 8. Often survival is the motivation for the close monitoring of costs and revenues seen in the construction industry. Clients, consultants and contractors have a joint interest in ensuring that project costs are monitored and controlled and this is dealt with in some depth. A more strategic issue is investment appraisal for projects and a number of techniques is reviewed.
  11. Chapter 9 is concerned with financial performance. In particular, decisions about bidding and risk are key strategic decisions in an industry in which the majority of projects are still let in competition for both professional and contracting firms. Financial reporting is a legal requirement for companies and the understanding and interpreting of financial reports and accounts is discussed.
  12. 1.6 Decision-making techniques These chapters give quantitative support to the chapters on strategic management and, particularly, to the chapters on financial management. Such is the scope of the book. Each chapter starts with an overview of the content of the chapter and concludes with a summary of the main Construction Management in Practice 7 ideas together with relevant questions for consideration and suggestions for further reading.
  13. Thank you for listening! - Santoyo, Jullie Anne R.