The document discusses construction management. It notes that the construction industry contributes significantly to the Indian economy and GDP. Construction management is important for large-scale capital projects to control time, cost, and quality. Effective construction management is necessary for economic growth. Construction projects require managing many resources and involve various disciplines, making management and planning essential. Reasons for project overruns include poor cost estimates, resource planning, and schedule management. The document also outlines Henri Fayol's 14 principles of management.

1. UNIT 1- CONSTRUCTION
MANAGEMENT
 UNIT-1
 NAME OF STUDENT---
Aishwarya Eknath Phalke

2. Role of construction industry in
infrastructure development
 Strategic tool to achieving sustainable development
 Construction output as growth-initiating and growth
dependent
 Contributes significantly to the economy; GDP
 Provide outputs to most industries and utilises the
outputs of many industries
 Contributes significantly to the informal sector
 Employment generation

3. NATURE OF CONSTRUCTION
INDUSTRY
 The Construction industry of India is an important
indicator of the development as it creates investment
opportunities across various related sectors.
 The construction industry has contributed an
estimated US$308 billion to the national GDP in 2011-
12 (a share of around 19%).
 In 2011, there were slightly over 500 construction
equipment manufacturing companies in all of India.
 The sector is labor-intensive and, including indirect
jobs, provides employment to more than 35 million
people.

4.  With the present emphasis on creating physical
infrastructure, massive investment is planned in this sector.
 The Planning Commission has estimated that investment
requirement in infrastructure to the tune of
about ₹14,500 billion or US$320 billion during the
11th Five Year Plan period.

5. CONSTRUCTION MANAGEMENT
 Construction Project Management (CM) is a
professional service that uses specialized, project
management techniques to oversee the planning, design,
and construction of a project, from its beginning to its end.
 The purpose of CM is to control a project's time, cost and
quality.
 CM is compatible with all project delivery systems,
including design-bid-build, design-build, CM At-Risk and
Public Private Partnerships.
 Professional construction managers may be reserved for
lengthy, large-scale, high budget undertakings (commercial
real estate, transportation infrastructure, industrial facilities,
and military infrastructure), called capital projects.

6. IMPORTANCE OF CM
 CM carries utilization of scarce resources by selecting
its best possible alternate use in construction industry.
 CM helps in reducing cost by proper planning
 Management is important for establishing sound
organisation.
 It establishes equilibrium in organisation.
 Effective construction management is essential for
economic growth.

7. NECESSITY OF CM
 Construction is one of the biggest industries in
the world today and it employs individuals from
various disciplines and backgrounds
 Depending on the size of the project, whether it
be an office building or a skyscraper; thousands
of people may be involved, which obviously
requires a quite a bit of planning.
 Any given project usually includes the project
owners, the designers (engineers and architects),
and the builders and contractors.

8. Characteristics of CM
 A project exists for fixed duration of time.
 A project cycle contains project preparation,
implementation and operation places
 Each project is time bound i.e has definite completion
 The project team is organised of members belonging to
different disciplines
 Each project is consisting of series of intermediate
activities consuming resources and completion of time.

9. Functions of CM
 Planning and forecasting:-
o Strategic Planning
o Tactical Planning
 Organisation
 Directing
 Commanding
 Coordinating
 Controlling

10. Construction differs from
manufacturing in that
 Difficult to manage and supply utilities and other
resources.
 Technical innovations are adopted slower.
 Success is dependent upon the quality of its people.
 Very custom-oriented
 Product can be of mind-boggling size, cost, and
complexity

11. Project Overrun
 Project overrun is also called as a cost increase or
budget overrun.
 Sometimes an organisation may suffer some additional
costs and underestimation of the actual cost during
budgeting that weren’t tolerable for the budget on the
planning stage.
 It is a common occurrence in infrastructure, building
and technology projects

12. Reasons behind Project Overrun
 Under financing
 Unfeasible cost estimates
 Underestimating the project complexity
 Prolonged project schedule
 Lack of backup plan
 Lack of resource planning
 Poor performance
 Change in scope

13. Henri’s Fayol 14 Principles of
Management
 Division Of labour
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Sub ordination of individual interests to the general interests
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of Tenure of personnel
 Initiative
 Esprit de Corps(harmony in the work groups)

14. THANK YOU……