Separate references commonly used e.g ‘construction industry’, ‘building industry’ or ‘construction and building industry’ demonstrate the different definitions and terminology used to describe the construction industry (Ofori, 1990). However, most of these definitions aimed to describe the industry based on the nature, features and boundaries of construction industry (Ofori, 1990). Historically construction industry defined as “aggregation of businesses engaged in closely related activities” (Colean and New comb, 1952) and (Lange and Mills, 1972). Nam and Tatum 1989 defined construction industry as the all types of activities carried out for erection and repairing the fixed structures. In 1984 Hillebrandt explained construction industry as a cover for all parties involved in construction process including suppliers.
Chapter 1 Introduction 1.1 Overview Construction industry is the most complex industry where various elements interact and are interlinked. Construction starts with planning, designing, executing and continues until the project is built and ready for use. The whole construction process (from undertaking of work to the delivery) is managed by a contractor. Contractor is responsible for the day-to-day oversight of a construction site, management of trades, and communication of information to the involved parties throughout the course of a building project. The contractor’s primary role in the construction cycle is that of a resources manager, resources include men, machines, material, money and time.
In the British construction industry, the term ‘procurement’ show a series of activities and processes undertaken by the developer or client to secure the construction or refurbishment of a building. The Government Procurement Service define procurement as the ‘whole process of acquisition from the third parties and covers goods, services and construction projects. This process spans the whole life cycle from initial concept and definition of business needs through to the end of the useful life of an asset or end of a service contract.’ ( Arun District Council, 2011) There are three main types of procurement methods that are commonly used in the British construction industry which are traditional approach (lump sum contract), design and
Meanwhile, construction is described as the business or work of building houses, offices, factories and including civil works such as bridges, dams, highways and others. Abdul Rashid (2002) in his book clearly defined the procurement in the construction context. The procurement in the context of construction refers to the processes
Question Evaluate how project managers are able to add value to the construction process Answer The project manager in construction project can add value to the client in various aspect. By definition, A project manager is the person who is accountable for the accomplishment of the stated project objectives. He is the key person for the construction project management. To evaluate the essence of project manager, we examine its value adding elements throughout the entire construction process. DESIGNING PHASE 1.
Forms of contract In construction industry there are numbers of standard construction form, models, templates are available, and choosing a particular contract is depending on type of procurement strategy that been selected by the clients and other parties. Generally the all contractors are containing the appliances for determine and conveying the situation while the contractor in a position to entitled for additional payments more than the real value of the project work. JCT: The JCT is Joint Contracts Tribunal which also known as JCT established in 1931 by the “Royal Institute of British Architects”, and the “National Federation of Building Trades Employers”, with the aim of developing construction contract standards, guidance and transcripts. Also JCT is keen on developing other construction contract related documentations for wealth of construction industry. The JCT developed varieties of construction related contracts are primarily building than civil engineering contracts, but these contracts are used for construction specially in the occasion of building construction and civil engineering involved in a project.
Procurement is a combination of different methods of purchasing construction objects and includes such variables as source of funding, partner selection method, price basis, responsibility for design, responsibility for management, and amount of subcontracting (Murdoch and Hughes, 2008). Before proceeding with a project, the appropriate procurement option has to be selected by the client that provide an effective organization to minimize all the risk that will be occur during the construction process. There are several procurement approaches that have to be taken in the construction industry such as the traditional method, design and build method, and management method. The selections of an appropriate procurement system to be used in a project are important to guarantee the success of the project. Consideration and analysis in selecting the appropriate procurement have to be made and it will include several main criteria such as cost certainty, time certainty, speed, and flexibility.
It is necessary to track and make available these drawings at site on time so that the construction activities are not stopped. 7. Financial Aspects: Financial aspects of construction is the most important aspects. Different expanses are required at different stages of construction project. Proper planning of resources for construction helps the project proceed efficiently.
What are the differences Between Job-Order and Process Costing? Solution Job Order The establishment of job costs involves the accumulation of detailed production costs attributable to specific units or groups of units. For example, building custom cabinetry represented a system of employment costs. The costs of labor worked on this specific topic furniture would be recorded in a time sheet and then compiled in a cost sheet for the job. Similarly, any wood or other parts used in the construction of furniture loaded production operations linked to the rack.
A finished communication matrix consists of information about producer, receiver, transmittal method and submitted date. The below project components are taken up by each team member to draft the project communication plan. • Project Initiation Document (PID) • Permits and Environmental Studies • Plans, Specifications, and Estimates (PS&E) • Right of Way • Construction A communication plan assists operative and well-organized communications with the several members of the project having a major contribution in the