About the authors xi
Preface to the eighth edition xiii
Companion website xv
1 Introduction 1
Structure of the book 2
Objectives and contents 3
2 Quality management 9
Summary 9
Introduction 9
Notions of quality 9
Quality in transition 10
Quality control and inspection 11
Quality assurance 13
Total quality management 20
A systems approach to managing quality 26
Further Reading 32
Section 1: Project production management 33
3 Production process improvement 35
Summary 35
Introduction to lean construction 35
Energy 36
Productivity 36
Economic development 37
International environmental protocols 45
UK emissions 47
Productivity improvement 49
Management systems 54
Management processes (see BS 6079) 60
Employee participation 71
Macro key performance indicators 87
Further Reading 88
4 Planning techniques and methods 89
Summary 89
Introduction 89
Planning in construction 89
Who plans? 90
Planning the design process 92
Planning for waste management 93
Planning for safety, health, and the environment (SHE) 94
Planning techniques 95
Other planning techniques 112
Modern construction planning 119
Monitoring progress and managing the time model 121
Construction planning and scheduling with 4D CAD and BIM 122
Planning multiple projects 123
Appendix 4.A. Normal Probability Distribution Tables (Table 4.3) 125
Further Reading 126
5 Workforce motivation 127
Summary 127
Introduction 127
Motivation theories 127
Payment systems, remuneration and performance 132
Further Reading 144
6 Project cost control 147
Summary 147
Why cost-control is essential for construction projects 147
A cost-control procedure for construction works 148
Points to consider when choosing a cost-control system 159
Management of the carbon footprint 160
Further Reading 160
7 Management of equipment 161
Summary 161
Acquisition of plant and equipment 161
The financing of equipment 162
Systematic plant selection 164
The essential characteristics of a decision situation 165
Setting hire rates 173
Marginal costing 180
Plant maintenance 180
Monitoring of maintenance servicing and exhaust emissions 181
Human-centred approaches 182
Further Reading 182
Section 2: Business management 183
8 Project procurement 185
Summary 185
Introduction 185
The construction process (BS 6079-1:2002) 186
ISO/BS procurement standards 189
Appointing the team/parties to the contract 190
Public contracts and supplies 192
Project manager/leader 193
The contract 197
Health and safety considerations 201
Categories of contract 204
Separated and cooperative contracts 204
Management-oriented contracts 207
Integrated contracts 211
Discretionary contracts 219
Performance of different contract categories 223
Client risk exposure for different contract categories 223
Further Reading 225
9 Estimating and tendering 227
Summary 227
Introduction 227
Parties involved in estimating and tendering 230
The estimating process 232
BOQ estimating 232
Collection and calculation of cost information 234
Project study 242
Preparing the estimate 243
Submitting the tender 251
Estimating in management contracting 252
Design and build 254
Cost planning 255
Cost management 255
Whole-life costing 256
Private finance initiative (PFI) 256
Computer aided estimating 257
BIM and estimating 258
Summary 259
Future Reading 260
10 Competitive bidding 261
Summary 261
Introduction 261
Part 1: A brief review of bidding strategy 262
Part 2: The importance of accuracy in estimating 268
Part 3: Some ways of using the existing theories 275
Recent developments in bidding 282
Client evaluation of bids 283
Further Reading 285
11 Company budgetary control 287
Summary 287
Introduction 287
Preparation of budgets 288
The carbon footprint 295
Further Reading 297
12 Cash flow and interim valuations 299
Summary 299
Introduction 299
The need for cash flow forecasting by contractors 299
The requirements of a forecasting system 301
Capital lock-up 306
The factors that affect capital lock-up 307
Interim valuations and cash flow 312
Measurement of work in activities 316
Computers and cash flow 316
Cash flow forecast by standardised models 319
Closing remarks 319
Further Reading 320
13 Economic assessments 321
Summary 321
Introduction 321
Interest 323
Economic comparisons 325
Profitability measures 328
Inflation 332
Accuracy of future estimates 336
Financial Modelling 340
Cost-benefit analysis 345
Some worked examples 347
Further Reading 354
Section 3: Administration and company management 355
14 Company organisation 357
Summary 357
Introduction 357
The function of a manager 357
Company organisational structures 359
Departments/functions 368
Health, safety, occupational welfare and pensions 376
Educational qualifications and vocational training 377
Corporate social responsibility 385
Management attitude 386
Construction companies in an internet age 387
Virtual companies 388
Collaborative working 388
Further Reading 388
15 Market planning and business development 389
Summary 389
Introduction 389
Market planning 389
The business-development process 390
16 International construction logistics and risks 401
Summary 401
Introduction 401
The international environment 402
Further Reading 409
17 Towards BIM and digital construction 411
Summary 411
Introduction 411
Information and information management 412
The construction company’s business 413
Processes involved in a construction business 413
Information needs to support business processes 416
Management of contractors’ information resources 417
Construction information systems 420
The construction information manager 425
The emergence of BIM 426
BIM standards 428
Digital construction 433
Further Reading 434
18 Financial management 435
Summary 435
Introduction 435
Types of businesses 435
Types of capital 440
The control of capital 446
The company accounts 449
Regulatory authorities 461
Further Reading 462
Section 4: Self-learning exercises 463
19 Questions – construction management 465
Questions 467
20 Questions – operational research (OR) 519
Summary 519
Questions 521
21 Questions – six sigma 533
Six sigma 534
Problems (readers should start with Problem 1) 534
Further Reading 555
Bibliography 557
Abbreviations and acronyms 571
Index 577
