Construction Industry The Organisational Structure Of The Company Essay

Construction Industry The Organisational Structure Of The Company Essay

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In the construction industry the organisational structure of the company depends on the size of the contract involved from a small refurbishment project to a multi- million pound project. In most construction industries the organisational structure can be separated into three different categories:
• Client team
• Design team
• Project team

The client team is headed by the investment decision maker (IDM) who decides on the ‘go ahead’ of the project. This role can be carried out by a single person or can be the responsibility of a number of people, for example, a board of directors. The IDM should be fully committed on the final delivery of the project. The IDM has to evaluate the project on whether it is going to be value for money, making sure all risks have been considered. The IDM appoints a senior responsible owner (SRO) usually someone from higher management. The SRO is responsible for the success of the project and the delivery of it and reports directly to the IDM. The SRO is also responsible for the running of the projects budget. The SRO is responsible for all lines of communication, deal with any issues that arise and if there are any major changes in the project he/she can approve them. The SRO appoints a project sponsor. The project sponsor (PS) is the ‘eyes and ears’ of the client and deals with the day to day management of the project. The project sponsor does not need to have any construction experience as long as he is supported by a project manager who does require the expertise. The PS must always report back to the SRO. The PS must have a full understanding of the project and should relay this to the project manager and design team. The project manager represents the client and is the middle man between the desi...


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...s/works because the main contractors may not be able to carry out certain parts of the project or it may not be financially viable to employ someone on one project and then have to terminate their employment on the next project. Examples of sub-contractors that might be used on a certain project are steel erectors, roofers, ground-workers, plumbers and electricians. The sub-contractors should take clear direction from the main contractor and inform them of any variations. They should be competent in what they do and have the correct skills to carry out their job. The sub-contractors should be site inducted before commencing on the project and be fully briefed on health and safety issues.
It is the suppliers responsibility to provide a good quality of materials /services to the client making sure that they are delivered on time and within the budget requirements.




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