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Library of Congress Cataloging-in-Publication Data:

Sears, S. Keoki.
    Construction project management : a practical guide to field construction management. —Sixth edition/S. Keoki Sears [and 4 others].
        pages cm
    Includes index.
    ISBN 978-1-118-74505-2 (hardback : acid-free paper); ISBN 978-1-118-74525-0 (ebk); ISBN 978-1-118-74526-7 (ebk)
1. Construction industry—Management. 2. Project management. I. Title.
    TH438.S43 2015
    690.068′4—dc23

2014041076

Contents

Preface

1 Construction Practices

1.1 Introduction
1.2 The Construction Industry
1.3 The Construction Project
1.4 Project Stages
1.5 Owner
1.6 Architect-Engineer
1.7 Prime Contractor
1.8 Competitive Bidding
1.9 Negotiated Contracts
1.10 Combined Bidding and Negotiation
1.11 Subcontracting
1.12 Design-Bid-Construct
1.13 Fast Tracking
1.14 Construction Contract Services
1.15 Construction Services
1.16 Design-Construct
1.17 Construction Management
1.18 Fixed-Sum Contract
1.19 Cost-Plus-Fee Contracts
1.20 Work-by-Force Account
1.21 Turnkey and BOT Contracts
1.22 Integrated Project Delivery
1.23 Speculative Construction
1.24 Management during the Design Phase
1.25 Management of Field Construction
1.26 Project Manager
1.27 Project Manager Qualifications
Key Points and Questions

2 Systematic Project Management

2.1 Introduction
2.2 Need for Project Management
2.3 Project Management Characteristics
2.4 Discussion Viewpoint
2.5 Management Procedures
2.6 Time and Cost Management
2.7 Planning and Scheduling
2.8 CPM Procedure
2.9 Time Monitoring and Control
2.10 Project Cost System
2.11 Estimating the Project
2.12 Project Cost Accounting
2.13 Resource Management
2.14 Project Financial Control
2.15 Automating Project Management Tasks
2.16 Manual Methods
2.17 Discussion Format
2.18 Example Projects
Key Points and Questions

3 Project Estimating

3.1 Introduction
3.2 Project Cost System
3.3 Preliminary Cost Estimates
3.4 Final Cost Estimate
3.5 Example Projects
3.6 Quantity Survey
3.7 Management Input
3.8 Field Supervision
3.9 Construction Methods
3.10 General Time Schedule
3.11 Construction Equipment
3.12 Summary Sheets
3.13 Material Costs
3.14 Labor Costs
3.15 Indirect Labor Costs
3.16 Labor Unit Costs
3.17 The Cost of Heavy Equipment
3.18 Bids from Subcontractor
3.19 Project Overhead
3.20 Home Office Overhead
3.21 Markup
3.22 Contract Bonds
3.23 Recap Sheet
3.24 Cost Models
3.25 Project Budget
3.26 Progress Estimate
3.27 Estimating for Changes
Key Points and Questions

4 Project Planning

4.1 Introduction
4.2 CPM Procedure
4.3 Planning Phase
4.4 Job Activities
4.5 Job Logic
4.6 Restraints
4.7 Beginning-to-End Planning
4.8 Top-Down Planning and the Work Breakdown Structure
4.9 Precedence Notation
4.10 Precedence Diagram
4.11 Network Format
4.12 Lag Relationships
4.13 Precedence Diagram for the Example Projects
4.14 Value of Precedence Network
4.15 Repetitive Operations
4.16 Network Interfaces
4.17 Master Network
4.18 Subnetworks
4.19 Computer Applications for Planning
Key Points and Questions

5 Project Scheduling Concepts

5.1 Introduction
5.2 Scheduling Procedure
5.3 Activity Times
5.4 Rules for Estimating Activity Durations
5.5 Estimating Activity Durations
5.6 Time Contingency
5.7 Project Weather Delays
5.8 Network Time Computations
5.9 Early Activity Times
5.10 Project Duration
5.11 Late Activity Times
5.12 Total Float
5.13 Critical Path
5.14 Free Float
5.15 Activity Time Information
5.16 Float Paths
5.17 Early-Start Schedule
5.18 Tabular Time Schedules
5.19 Activities and Calendar Dates
5.20 Calendars for Weather
5.21 Lags between Activities
5.22 Pipeline Scheduling Computations
5.23 Pipeline Summary Diagram
5.24 Interface Computations
5.25 Hammock Activity
5.26 Milestones
5.27 Time-Scaled Networks
5.28 Nature and Significance of Floats
5.29 Bar Charts
5.30 Computer Applications for Scheduling
Key Points and Questions

6 Production Planning

6.1 Introduction
6.2 Planning Team
6.3 Reengineering the Project
6.4 Planning for Production
6.5 Support Planning
6.6 Technical Problems
6.7 Personnel Planning
6.8 Safety Planning
6.9 Planning for Quality
6.10 Material Ordering and Expediting
6.11 Material Handling, Storage, and Protection
6.12 Equipment Planning
6.13 The New Production Model
Key Points and Questions

7 Managing Time

7.1 Introduction
7.2 Time Schedule Adjustments
7.3 Need for Time Reduction
7.4 General Time-Reduction Procedure
7.5 Shortening the Longest Time Path
7.6 Project Direct Costs
7.7 Variation of Activity Direct Cost with Time
7.8 Project Indirect Costs
7.9 Practical Aspects of Time Reduction
7.10 Reduction of the Highway Bridge Duration
7.11 Time Reduction of Highway Bridge by Expediting
7.12 Least-Cost Expediting of the Highway Bridge
7.13 Limitations on Time-Reduction Steps
7.14 Variation of Total Project Cost with Time
7.15 Expedited Highway Bridge Schedule
7.16 Milestone and Interface Events
7.17 Project Extension
7.18 Time Management System
7.19 Aspects of Time Management
7.20 Key-Date Schedules
7.21 Adjustment of Move-in Date
Key Points and Questions

8 Resource Management

8.1 Introduction
8.2 Objective of Resource Management
8.3 Project Resource Management
8.4 Aspects of Resource Management
8.5 Tabulation of Labor Requirements
8.6 Project Labor Summary
8.7 Variation in Labor Demand
8.8 Manpower Leveling
8.9 Heuristic Manpower Leveling
8.10 Numerical Example
8.11 Labor Leveling in Practice
8.12 Restricted Labor Supply
8.13 Complex Labor Scheduling
8.14 Equipment Management and Scheduling
8.15 The Construction Supply Chain
8.16 Material Scheduling
8.17 Resource Expediting
Key Points and Questions

9 Project Scheduling Applications

9.1 Introduction
9.2 Role of the Schedule
9.3 Operational Schedules
9.4 Organizing Schedule Data
9.5 Schedule Presentation Formats
9.6 Schedules for Repetitive Operations
9.7 Impacted Baseline Schedule
9.8 But-for or Collapsed As-Built Schedule
9.9 Legal Schedules
9.10 Handling Weather Effects and Other Unknowns
9.11 Presenting the Schedule
Key Points and Questions

10 Project Coordination

10.1 Introduction
10.2 Schedule Information on the Job
10.3 Detailed Schedules
10.4 Subcontractor Scheduling
10.5 Activity Planning
10.6 The Last Planner Process©
10.7 Production Checklists
10.8 Look-Ahead Schedules
10.9 Planning the Paperwork
10.10 Putting the Plans on Paper
10.11 Progress Measurement
10.12 Progress Reporting
10.13 Bar Charts
10.14 Highway Bridge as of July 14
10.15 Weekly Progress Reports
10.16 Field Progress Narrative
10.17 July 21 Status of Highway Bridge
10.18 Progress Analysis
10.19 Schedule Analysis to Determine Project Delays
10.20 Corrective Action
10.21 Network Updating
10.22 Updating Calculations Manually
10.23 Scheduling Software
10.24 Project Progress Curves
Key Points and Questions
Note

11 Project Cost System

11.1 Introduction
11.2 The Construction Cost Cycle
11.3 Objectives of a Cost System
11.4 Project Cost Control
11.5 Data for Estimating
11.6 Project Cost Code
11.7 Usage of Project Cost Code
11.8 Project Cost Accounting
11.9 Labor and Equipment Costs
11.10 Cost Accounting Reports
11.11 Labor Time Reporting
11.12 Time Card Preparation
11.13 Measurement of Work Quantities
11.14 Work Quantities from Network Activities
11.15 Cost Records and Reports
11.16 Weekly Labor Reports
11.17 Weekly Labor Cost Report
11.18 Equipment Cost Accounting
11.19 Monthly Cost Forecast
11.20 Time-Cost Envelope
11.21 Earned Value Management System
11.22 Forecasting Final Project Results Using the EVMS
11.23 Special Cost Accounting Problems
11.24 Production Cost Reduction
11.25 Information for Estimating
11.26 Postproject Evaluation
11.27 Software Applications
11.28 Accuracy of Estimating
Key Points and Questions
Note

12 Project Financial Management

12.1 Introduction
12.2 Financial Control
12.3 Progress Payments
12.4 Pay Requests for Unit-Price Contracts
12.5 Project Cost Breakdown
12.6 Pay Requests for Lump-Sum Contracts
12.7 Use of Time-Control Activities for Pay Requests
12.8 Pay Requests for Cost-Plus Contracts
12.9 Payments to Subcontractors
12.10 Schedule of Payments by Owner—Unit-Price Contract
12.11 Schedule of Payments by Owner—Lump-Sum Contract
12.12 Final Payment
12.13 Cash Flow
12.14 Cash Disbursement Forecasts
12.15 Cash Income Forecasts
12.16 Disbursement Controls
12.17 Project Changes
12.18 Contract Change Orders
12.19 Claims
12.20 Daily Job Log
Key Points and Questions

Index

End User License Agreement

List of Illustrations

Chapter 2

Figure 2.1a Example heavy civil construction project
Figure 2.1b Example commercial building project

Chapter 3

Figure 3.1a Highway bridge, profile
Figure 3.1b Highway bridge, transverse section
Figure 3.2a Commercial building architectural floor plan
Figure 3.2b Commercial building elevations
Figure 3.3 Highway bridge, bid form
Figure 3.4 Highway bridge, work quantities
Figure 3.5a Highway bridge, general time schedule
Figure 3.5b Commercial building, time schedule
Figure 3.6 Highway bridge, bid-item summary sheet
Figure 3.7 Highway bridge, overhead estimate
Figure 3.8 Highway bridge, recap sheet
Figure 3.9 Highway bridge, completed bid form
Figure 3.10a Highway bridge, project budget
Figure 3.10b Commercial building project budget

Chapter 4

Figure 4.1 Concrete footing, precedence diagram
Figure 4.2a Highway bridge, general job plan
Figure 4.2b Commercial building, general job plan
Figure 4.3 Pipeline relocation, basic plan
Figure 4.4 Pipeline relocation, precedence diagram planning
Figure 4.5 Pipeline crossing structure, precedence diagram planning
Figure 4.6 Mobilize pile-driving rig, precedence diagram planning

Chapter 5

Figure 5.1 Highway bridge, forward-pass calculations
Figure 5.2 Highway bridge, backward-pass calculations
Figure 5.3a Highway bridge, activity times
Figure 5.3b Commercial building, activity times
Figure 5.4a Highway bridge, conversion calendar
Figure 5.4b Commercial building, conversion calendar
Figure 5.5a Highway bridge, early-start schedule
Figure 5.5b Commercial building, early-start schedule
Figure 5.6 Lag relationships, precedence notation
Figure 5.7 Pipeline relocation, precedence diagram time computations
Figure 5.8 Pipeline relocation, summary precedence diagram
Figure 5.9 Pipeline crossing structure, precedence diagram time computations
Figure 5.10 Highway bridge, hammock activity
Figure 5.11 Highway bridge, bar chart schedule

Chapter 6

Figure 6.1a Highway bridge, site layout
Figure 6.1b Commercial building, site layout

Chapter 7

Figure 7.1 Activity time-cost variation
Figure 7.2 Highway bridge, critical activities in parallel
Figure 7.3 Highway bridge, subdivision of critical activity
Figure 7.4 Highway bridge, direct costs of expediting actions
Figure 7.5 Highway bridge, least-cost expediting
Figure 7.6 Highway bridge direct, cost of expediting
Figure 7.7 Highway bridge, variation of costs with duration
Figure 7.8 Highway bridge, expedited schedule
Figure 7.9 Time management cycle
Figure 7.10 Highway bridge, initial key-date schedule

Chapter 8

Figure 8.1 Highway bridge, activity manpower needs
Figure 8.2 Highway bridge, daily manpower compilation

Chapter 9

Figure 9.1a Highway bridge, total float sort
Figure 9.1b Commercial building, total float sort
Figure 9.2 Pipeline relocation line-of-balance schedule
Figure 9.3 Resolving line-of-balance conflicting activities
Figure 9.4 Five-mile transmission line
Figure 9.5 Average rainfall summarized by month and volume
Figure 9.6 Selection of weather days based on historical summary

Chapter 10

Figure 10.1 Highway bridge, initial detailed schedule
Figure 10.2 Concrete wall and column checklist
Figure 10.3 Highway bridge, seven-day look-ahead schedule
Figure 10.4 Highway bridge, bar chart as of July 14
Figure 10.5 Highway bridge, weekly progress report
Figure 10.6 Highway bridge, bar chart as of July 21
Figure 10.7 Revised network problem with activity 140
Figure 10.8 Change order process flowchart
Figure 10.9 Highway bridge, network update information
Figure 10.10 Project progress curves

Chapter 11

Figure 11.1 Cost cycle for a construction project
Figure 11.2 Highway bridge, daily labor time card
Figure 11.3 Highway bridge, weekly labor time card
Figure 11.4 Highway bridge, weekly work quantity report
Figure 11.5 Highway bridge, weekly labor cost report (#1)
Figure 11.6 Highway bridge, weekly labor cost report (#2)
Figure 11.7 Highway bridge, monthly cost forecast report
Figure 11.8 Time-cost envelope
Figure 11.9 Earned value management system

Chapter 12

Figure 12.1 Highway bridge, monthly pay request
Figure 12.2 Periodic estimate for partial payment, lump-sum contract
Figure 12.3 Highway bridge, schedule of progress payments
Figure 12.4 Highway bridge, contractor’s expense and income

Preface

This sixth edition of the well-respected text on construction project management represents a significant revision. The intent is to retain the flavor and quality of the classic book while eliminating some of the detail and updating the content. The content is enhanced by the addition of new material introducing some rapidly evolving topics in construction project management. New instructional materials have also been added to each chapter to increase its value in the classroom. A new example project, selected from the building sector, has been incorporated. Finally, this book takes advantage of advances in technology by employing a companion website that contains material that was appended at the end of the book or inserted as oversized figures in previous editions.

Some detail (such as the detailed cost estimate) and some older content, such as that describing the Arrow Diagramming Method for Critical Path representation have been greatly reduced or eliminated. The coverage of other topics has been increased, and new topics have been added. Reference to line-of-balance scheduling, which provides a valuable representation of repetitive projects, has been expanded. An introduction to Building Information Modeling (BIM) and its associated contract basis founded on Integrated Project Delivery (IPD) has been added. Also a section and various references throughout the book have been added to introduce the basics of lean construction.

To support the use of the book in a learning environment, an introductory section for each chapter has been added that includes a bulleted list of learning objectives. At the end of each chapter, a list of key points from the chapter has been provided, together with review questions and problems. To support live delivery of classes, a set of PowerPoint slides has been prepared for each chapter. It is anticipated that these instructional enhancements will enrich the learning experience provided by the book.

To broaden the scope of the sixth edition, a new example project in the form of a commercial building has been added. The bridge example is retained and in many instances is the single example of reference where topics are addressed that represent the building sector as well as the heavy civil sector.

The building example is an actual project, in the form of a single-story office building constructed in 2006–2007 for a technology company engaged in computer programming and consulting. The design and construction information for the building project was graciously provided to the authors for inclusion in this book by the project design team, the contractor, and the owner. A picture of the building, shown on the book cover, was also provided.

A building, by nature, is far more complex than a bridge. Whereas the bridge is primarily composed of structure and earthwork, and can be fully described in a few drawings, a building contains structure and earthwork, but it also contains an envelope to keep the elements out and to enable control of the interior environment. All surfaces in the building, including floors, walls, and ceilings, require finishes. Buildings have openings requiring doors and windows and the associated hardware. They typically have architectural features such as millwork and signage. Moreover, a building contains a number of systems, such as mechanical, plumbing, fire safety, electrical, and low-voltage systems for security and communication. Each of these building elements must be fully designed and represented in graphical models (the drawings). As a result, though the building is relatively small and uncomplicated, the design of our commercial building example project encompasses some 40 pages of drawings. The inclusion of this complete set of drawings is made possible only by linking a companion website to the book. The companion website is accessed through the following URL: www.wiley.com/go/cpm6e.

In addition to the commercial building drawings, a number of other useful items will be found on the companion website. On the website will be found the figures that were large enough in previous editions to require cumbersome fold-out pages. These are referred to as charts in this edition to distinguish them from figures embedded in the text. Providing them in digital format on the companion website is consistent with the industry trend away from paper documentation. Relevant appendix material from previous editions has also been retained on the companion website. Finally, an instructor-only, password accessible location on the website holds an answer key for the end-of-chapter review questions and problems, as well as the PowerPoint presentations.

A new team of authors has taken on the responsibility to develop this sixth edition of Construction Project Management. Jerald L. Rounds and Robert O. Segner, Jr. are honored to have been chosen to continue the excellence of Construction Project Management initiated by Richard H. Clough and continued through many revisions by Glenn A. Sears and more recently by S. Keoki Sears.

Jerald L. Rounds and Robert O. Segner, Jr.

A Practical Guide to Field Construction Management

A Practical Guide to Field
Construction Management