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
4. Reduce indirect costs associated with project such as :
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)
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.
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.
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.
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
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.
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
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.
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.
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 Civildatas.blogspot.in ideas together with relevant
questions for consideration and suggestions for further reading.