Construction Management Free Essays

Bonds LaShundra Hines Indiana Wesleyan University Personal Finance BUS 150 Keith Smith July 22, 2009 Construction Management The function of a construction manager is to advise and consult a client or owner concerning the programming and design of a project. This would include cost estimation, coordination of the work schedule , equipment and material deliveries. A concern in the managers advisement and consultation is trade jurisdiction of the various contractors and the activity coordination of the engineers and architect. We will write a custom essay sample on Construction Management or any similar topic only for you Order Now One of the most important functions of a construction manager is to offer critical analysis as it relates to the design, economics, and constructibility being proposed by the architect while always keeping in mind the initial budget and the ultimate goal of providing the best possible facility. Demographics In the analysis of demographics and its impact on commercial spending, consideration should be given to the cause of Dayton residents who flee to neighboring communities,increasing crime rates. The lack of employment opportunities, and the infiltration of less desirable residents who fail to take proper care of their property, are some reasons for this flight,which robs Dayton City limits of responsible consumers whose spending would otherwise enhance retail development and progress. It is true, that those disadvantaged families who have been victimized by alcohol and substance abuse, economic down turns and criminal activity, need decent residents like anyone else. However; given the current economically depressing conditions, law enforcement, city inspectors and other institutional overseers are obliged to be more diligent in minimizing problems that arise under these circumstances. Urban Retail Strategy Proper use of land based resources dictates that urbanism advocates mixed-use development which combines residential, commercial, cultural, and recreational uses, rather than segregating these uses into separate zones or traditional single-use zoning. This strategy also facilitates the presence of a variety of demographic entities as per age, sex, income, etc. These varied consumers would be available in the area of retail development and would also cancel some concerns of isolated criminal activity. Environmental Concerns Asbestos legal firms advertising to represent victims of asbestos contamination , appear hourly on tv commercials. This fact emphasizes that asbestos is still a dangerous threat to the population at large. It is a carcinogenic with a prolong incubation period (30+) years, that incapacitates the lungs and breathing process by the infiltration of hook-like fibers for which there is no cure. The state of Ohio is reminded of the devastation caused by asbestos in the city of Mansfield. Exposure to construction materials that were manufactures there, consisting of asbestos caused the death of workers and their families. This occurred prior to governmental warnings and regulations of asbestos containing materials; and has resulted in a host of multi- billion dollar class-action law suits. Dayton is likewise, littered with older structures and vacant buildings that present a similar threat and must be dealt with in consideration of any urban renewal strategy. Environmental Considerations Type I and type II environmental research and analysis involves a careful walk-thru grid pattern of the land area to investigate the presence of illegal dumping, oil and chemical leakage, the presence of underground utilities and other buried materials. Various municipal departments and the fire department , should be consulted as to the historical use of a particular parcel. The type II process involves the abatement of such research which include taking bulk samples of hazardous materials for lab analysis and later air samples during and after abatement to determine atmospheric quality. For many decades throughout the country we have seen large segments of the general populace favor suburban residency. This same phenomenon has affected the downtown and inner-city areas of the city of Dayton for many of the same reasons: I- The increase of inner-city crime, home invasions, robbery,drug traffic, drive-by shootings. II- Unhealthy industrial environment : violation of EPA(Environmental Protection Agency). Federal standards pertaining to harmful emissions and chemical contamination, as well as accidents due to violation of OSHA(Occupational Safety and Health Administration) standards. III- Atmospheric pollution and traffic congestion. IV- Relocation of business parks and shopping centers to the outgoing suburbs. In the case of Dayton in particular, the demise of NCR, GM, DHL, HEWITT SON FACTORY, have all contributed to massive unemployment and relocation and displacement of the city’s residents. Large National and international retailers and franchises such as Kroger, Wal-mart, McDonald’s have traditionally, perceeded their decisions to locate in a metropolitan area, based upon a impact assessment of the location. Such assessment have been based upon most of the considerations that I have just itemized, and include others such as geographical flood and storm histories, traffic patterns, age, income, and educational demographics and statistical analysis. Judging from this itemized list it becomes obvious why Dayton lacks the presence of some of these franchises in certain areas. My target date for completion of the proposed report shall be 60 days maximum or less after contract award. My recommended fee for completing the requirements of the contract is $175,000( one hundred and seventy-five thousand dollars). A lesser amount can be considered by myself as an independent consultant, and in consideration of the city’s budget limitations. A schedule for intermediate reports and presentations shall be available on a bi-weekly time-table. How to cite Construction Management, Essays Construction Management Free Essays CONSTRUCTION MANAGEMENT Chapter 4 Construction contracts. Author: Pawel Kotas, Polska Construction as a service activity having many dimensions. Starting from ideas, thru find funds, investor, design construction, find contractor, phase of construction, meet the requirements which investment needs to be in use and complete facility. We will write a custom essay sample on Construction Management or any similar topic only for you Order Now All these aspects are associated with large amounts of documents, permits. In this essay will be described various types of contracts between the investor and the contractor. Contract is an agreement between two or more parties to do something for a consideration establishes the basis for a contract. Because of business aspects of contracts problems can be solved in the court. Then the most important questions are: * Who are parties to a contract? * What are promises? * Other aspects of the contractual agreement. Construction contracts structure the way in which construction is purchased. There are variety between construction purchasing system and buying something in a store for instance mobile phone or sofa. When we have the finished product available for our inspection, we can decide whether it meets our requirements. Since the final product is available, we can purchase it from a single store. With the construction it works different. The facility is purchased before it is „manufactured† based on set of drawings and work descriptors. Finally item requires the purchaser to coordinate many entities to include: * Designers * Contractors * Subcontractors and vendors Major construction contract types The most widely used format of contract is the competitively contract. In public sector it is almost the only way to perform investment. The two main categories of competitively bid contracts are stipulated-sum contract and he unit-price contract. Both names refer to the method of quoting the price of work. Another contract format is the negotiated contract. In this way it is investor who after checking the strengths and weakness of the contractor’s proposal select the executor of the contract. This format is not the best option for public projects because favoritism can play a major part in determining which contractor is chosen. The factor that affect whether a contractor can be considered responsible. * Technical competence and experience Current financial position based on the firm’s balance sheet and income statement * Bonding capacity * Current amount of work under way * Past history of claim litigation * Defaults on previous contracts The major advantage which is essential for public work is that all bidders are treated equally and there are no favorites. That is very important because the political influence or another pressure can bias the selection of contractor. While construction contracts serve as a means of pricing construction, they also structure the allocation of risk to the various parties involved. The owner has the sole power to decide what type of contract should be used for a specific facility to be constructed and to set forth the terms in a contractual agreement. It is important to understand the risks of the contractors associated with different types of construction contracts. Lump sum contract In a lump sum contract, the owner has essentially assigned all the risk to the contractor, who in turn can be expected to ask for a higher markup in order to take care of unforeseen contingencies. Beside the fixed lump sum price, other commitments are often made by the contractor in the form of submittals such as a specific schedule, the management reporting system or a quality control program. If the actual cost of the project is underestimated, the underestimated cost will reduce the contractor’s profit by that amount. An overestimate has an opposite effect, but may reduce the chance of being a low bidder for the project. Unit price contract In a unit price contract, the risk of inaccurate estimation of uncertain quantities for some key tasks has been removed from the contractor. However, some contractors may submit an â€Å"unbalanced bid† when it discovers large discrepancies between its estimates and the owner’s estimates of these quantities. Depending on the confidence of the contractor on its own estimates and its propensity on risk, a contractor can slightly raise the unit prices on the underestimated tasks while lowering the unit prices on other tasks. If the contractor is correct in its assessment, it can increase its profit substantially since the payment is made on the actual quantities of tasks; and if the reverse is true, it can lose on this basis. Negotiated contracts An owner can enter into contract with a constructor by negotiating the price and method of reimbursement. This type can during the contract enter into fixed-price or unit –price contract. * Cost Plus Fixed Percentage Contract For certain types of construction involving new technology or extremely pressing needs, the owner is sometimes forced to assume all risks of cost overruns. The contractor will receive the actual direct job cost plus a fixed percentage, and have little incentive to reduce job cost. Furthermore, if there are pressing needs to complete the project, overtime payments to workers are common and will further increase the job cost. * Cost Plus Fixed Fee/ Variable Percentage Contract Under this type of contract, the contractor will receive the actual direct job cost plus a fixed fee, and will have some incentive to complete the job quickly since its fee is fixed regardless of the duration of the project. However, the owner still assumes the risks of direct job cost overrun while the contractor may risk the erosion of its profits if the project is dragged on beyond the expected time. When the fee is paid as a variable percentage the contractor agrees to a penalty if the actual cost exceeds the estimated job cost, or a reward if the actual cost is below the estimated job cost. * Target Estimate Contract This is another form of contract which specifies a penalty or reward to a contractor, depending on whether the actual cost is greater than or less than the contractor’s estimated direct job cost. Usually, the percentages of savings or overrun to be shared by the owner and the contractor are predetermined and the project duration is specified in the contract. Bonuses or penalties may be stipulated for different project completion dates. * Construction Management In construction management type contracts, one form is retained to coordinate all activities from concept design through acceptance of the facility. The firm represents the owner in all activities. It is the easiest way to construct the facility, but because of the fact that there must be employ addition company taking care about everything the price can be higher, and it might be easy way for the management companies to fool the investor. Bibliography: Construction Managment J. F. Collins How to cite Construction Management, Papers