Reference

1. BULEHORA UNIVERSITY
FACULTY OF ENGINEERING & TECHNOLOGY
DEPARTMENT OF CoTM
Lecture
CONSTRUCTION PERFORMANCE MANAGEMENT
& RESOURCE OPTIMIZATION(CoTM4162)
Chapter one
BY: ABATE NIGUSE
[08/ 11/2016]

2. Chapter one
Resource management
Construction planning is a fundamental and
challenging activity in the management and
execution of construction projects. It involves:
• The choice of technology,
• The definition of work tasks,
• The estimation of the required resources and
• The estimation of durations for individual tasks
• The identification of any interactions among the
different work tasks

3. The construction planning process is stimulated
through the study of project documents. These
documents includes:
• Designs & Drawings,
• Cost estimates & bill of Quantities,
• Construction method statements, Project planning
data,
• Contract documents, Site conditions,
• Working regulations,

4. 1.1 Financial Management
• FM is the planning for, acquiring and Utilizing
of funds in order to maximize the efficiency
and value of the firm
• It involves
Forecasting & Planning
Major investment and financing decisions
Coordination and Control
Risk Management

5. Cont’d
• Questions?
What capital investment should be made?
How and where the money to pay for the
proposed capital investment will be raised?
How the day-to-day financial activities are
handled?

6. Cont’d
• The term finance can be defined as the
management of the flows of money or its
equivalent through an organization, whether it
is a for or not-for profit firms, corporation or
non-corporate business, or government agency.
Finance concerns itself with the actual flow of
money as well as any claims against money.
The flow of fund is a continuous process

7. Major financial demand required for
Construction works include:
• Financial demand for Tendering
• Financial demand for Inputs(Resources)
• Financial demand for Contracting
• Financial demand for Supervision
• Financial demand for Payment Processing

8. Sources of Finance to Contractors
• Internal
Cash flow from operations
Sale of assets
Sources of Finance to Contractors
• External
Owners (equity)
Creditors (debt)

9. Goals of Financial Management
Profit Maximization:
• Goals of Financial Management
• It is vague
• It leaves consideration of timing and
• duration undefined
• It overlooks future aspects
Wealth Maximization:
• Avoid high level of risk
• Pay consistent dividend
• Seek growth in Sales
• Maintain market Price of Stocks

10. Functions of Financial Management
Liquidity functions
• Forecasting Cash flow
• Raising Funds
• Managing the flow internal funds
• Functions of Financial Management
Profitability functions
• Cost Control
• Pricing
• Forecasting profits
• Profit-risk analysis
Managing assets

11. 1.2. Human resource management(HRM)
• The project manpower management primarily
focuses on determining the size of the project work
force,
• Its structures in to functional groups an workers’
teams, and scheduling the manpower recruitment/
induction to match the task requirements.

12. This process involves
• Identifying the trades or the skills required.
• Establishing productivity standards /to
determine the umber of workers needed to
perform a given job in the specified time.
• Data wise forecasting of the workers’
requirements.
• Organizing the planned work force in to
operating work teams.

13. HUMAN RESOURCE MANAGEMENT
Recruitment
• It is the process by which a job vacancy is
identified and potential employees are notified.
• It’s process is regulated by the employment law.
Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal
vacancy lists.

14. CON’D
• Job description – outline of the role of the job
holder
• Person specification – outline of the skills and
qualities required of the post holder
• Applicants may demonstrate their suitability
through application form, letter or curriculum
vitae (CV)

15. Selection
• The process of assessing candidates and
appointing a post holder
• Applicants short listed – most suitable
candidates selected
• Selection process – varies according to
organization:

16. CON’D
• Interview – most common method
• Psychometric testing – assessing the personality of
the applicants – will they fit in?
• Aptitude testing – assessing the skills of applicants
• In-tray exercise – activity based around what the
applicant will be doing
• Presentation – looking for different skills as well as
the ideas of the candidate

17. Employment Legislation
DISCRIMINATION
• Crucial aspects of employment legislation:
– Race
– Gender
– Disability
Disability is no longer an issue for employers to ignore,
They must take reasonable steps to accommodate and
recruit disabled workers.

18. Discipline
• Firms cannot just ‘sack’ workers
• Wide range of procedures and steps in dealing
with
workplace conflict
– Informal meetings
– Formal meetings
– Verbal warnings
– Written warnings
– Working with external agencies

19. Development
• Developing the employee can be regarded as
investing in a valuable asset
– A source of motivation
– A source of helping the employee fulfills
potential

20. Training
• Similar to development:
– Provides new skills for the employee
– Keeps the employee up to date with changes
in the field
– Aims to improve efficiency
– Can be external or ‘in-house’

21. Rewards Systems
• The system of pay and benefits used by the
firm to reward workers
• Money not the only method
• Flexibility at work
• Holidays, etc.

22. Productivity
Measuring performance:
• How to value the workers contribution
• Difficulty in measuring some types of output

23. 1.3. Physical and information Resources
Management
Construction materials management
Definition
Material management can be defined as a
process that coordinates planning, assessing the
requirement, sourcing, purchasing, transporting,
storing and controlling of materials, minimizing
the wastage and optimizing the profitability by
reducing cost of material. Building materials
account for 60 to 70 percent of direct cost of a
project or a facility, the remaining 30 to 40
percent being the labor cost.

24. Efficient materials management include:
• Materials planning and programming,
• Material purchasing, inventory control, storekeeping and
ware housing,
• Materials transportation and handling at site,
• Materials codification and standardization and
• The disposal of surpluses.
• Both these works together helps to develop a plan for
procurement and stocking of construction materials so as
to provide at site, materials of right quality, in right
quantity, at right prices, from right source and at the right
time

25. Planning construction materials involves:
• Identifying the material required.
• Estimating quantities
• Defining specifications
• Forecasting requirements
• Locating sources of procurement
• Getting materials sample approved
• Designing materials inventory
• Developing procurement plan

26. Construction equipment management
• Construction equipment is indispensable in the
execution of modern high cost time bounded
massive construction projects.
• It produces out put with an accelerate speed in a
limited time.
• It saves manpower, which is becoming ever more
costly and demanding.
• It improves productivity, quality and safety and
also adds absence of urgency.

27. According to it’s purpose, whether general-purpose or
special-purpose equipments.
• For example, in general-purpose equipment we
can have earthwork equipment, material-hoisting
equipment, concreting equipment, etc.,
• while in special-purpose equipment we can have
bridge construction equipment, marine
equipment, large-diameter pipe-laying equipment,
and so on.

28. Project information mgt
• Information is what the human mind has
perceived, after analyzing the data
• Some people use the term data an information
synonymously.
• Data refers to raw, un-summarized and un-
analyzed inputs.
• Project management needs information to co-
ordinate the activities and makes decisions.

29. The required information for project
management
Levels Cost Parameters Schedule
Parameters
Project Manager Budget Control Milestones
Managers Cost & cash inflow
control
Work package
control
Supervisors Resources
productivity control
Activities
control

30. Project management information
systems(pmis)
It is aimed at collecting economically
• the right data in the right form through the
right means,
• at the right time in the right place and
• communicating the extracted information to
the right person on time, for making decisions.

31. Functions PMIS
• To set standards against which to measure and
compare the progress and costs such as:
1. time schedules,
2. the project control budgets,
3. the material schedules,
4. the labor schedules,
5. the productivity standards,
6. the quality control specifications and
7. the construction drawings.

32. CONT’D
• To organize efficient means of measuring, collecting,
verifying and quantifying the data that reflects the
performance with respect to the time, cost, resources
and quality.
• To manage the means of converting the data from the
operations into information.
• To provide management 'exception reports' to highlight
the critical factors.
• To deliver the information on time for consideration
and decision-making for remedial corrective action.

33. THE END
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