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Modern Construction Management

This new edition of a core undergraduate textbook for construction managers reflects current best practice, topical industry preoccupations and latest developments in courses and fundamental subjects for students. While the construction process still requires traditional skills, changes over recent decades today demand improved understanding of modern business, production and contractual practices. The authors have responded accordingly and the book has undergone a thorough re-write, eliminating some of the older material and adding new processes now considered essential to achieving lean construction. Particular emphasis is given, for example, to supply chains and networks, value and risk management, BIM, ICT, project arrangements, corporate social responsibility, training, health and welfare and environmental sustainability. Modern Construction Management presents construction as a socially responsible, innovative, carbon-reducing, manager-involved, people-orientated, crisis-free industry that is efficient and cost effective. The overall themes for the Seventh Edition are: Drivers for efficiency: lean construction underpinning production management and off-site production methods. Sustainability: reflecting the transition to a low carbon economy. Corporate Social Responsibility: embracing health & safety, modernistic contracts, effective procurement, and employment issues. Building Information Management: directed towards the improvement of construction management systems. The comprehensive selection of worked examples, based on real and practical situations in construction management and methods will help to consolidate learning. A companion website at offers invaluable support material for both tutors and students: Solutions to the self-learning exercises PowerPoint slides with discussion topics Journal and web references Structured to reflect site, business and corporate responsibilities of managers in construction, the book continues to provide strong coverage of the salient elements required for developing and equipping the modern construction manager with the competencies and skills for both technical and business related areas.
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Table of Contents

Preface to the sixth edition xi Preface to the seventh edition xii 1 Introduction 1 Structure of the book 2 Objectives and contents 3 Section 1 4 Section 2 4 Section 3 5 Section 4 5 2 Quality management 7 Summary 7 Introduction 7 Notions of quality 7 Quality in transition 8 Quality control and inspection 9 Quality assurance 11 Total Quality Management 20 A systems approach to managing quality 25 Reference 31 Section 1: Project production management 33 3 Production process improvement 35 Summary 35 Introduction to lean construction 35 Productivity 36 Economic development 37 Energy consumption 39 Sustainability 40 International environmental protocols 41 UK emissions 44 Productivity improvement 44 Management systems 48 Management processes (BSI (2002), BS 6079-1:2002) 53 Employee participation 61 Macro key performance indicators 77 References 78 4 Planning techniques 80 Summary 80 Introduction 80 Planning in construction 80 Who plans? 81 Planning techniques 83 Other planning techniques 101 Modern construction planning 107 Data exchange 111 Planning multiple projects 113 Reference 116 Appendix 4.A: Normal probability distribution tables 116 5 Workforce motivation 117 Summary 117 Introduction 117 Motivation theories 117 Payment systems, remuneration and performance 121 References 131 6 Project cost control 133 Summary 133 A cost-control procedure for construction works 133 Systems in current use 134 Points to consider when choosing a cost-control system 145 Management of the carbon footprint 146 7 Management of equipment 147 Summary 147 Acquisition of plant and equipment 147 The financing of equipment 148 Systematic plant selection 150 The essential characteristics of a decision situation 151 Setting hire rates 159 Marginal costing 166 Plant maintenance 167 Monitoring of maintenance servicing and exhaust emissions 168 References 168 Section 2: Business management 169 8 Project procurement 171 Summary 171 Introduction 171 The construction process (BS 6079-1:2002) 172 ISO/BS procurement standards 175 Appointing the team/parties to the contract 176 Public contracts and supplies 178 Project manager/leader 178 The contract 182 Health and safety considerations 186 Categories of contract 190 Separated and cooperative contracts 190 Management-oriented contracts 193 Integrated contracts 197 Discretionary contracts 205 Performance of different contract categories 209 References 210 9 Estimating and tendering 211 Summary 211 Introduction 211 Parties involved in estimating and tendering 213 The estimating process 214 BOQ estimating 215 Collection and calculation of cost information 217 Project study 225 Preparing the estimate 226 Tendering adjustments 232 Submitting the tender 234 Estimating in management contracting 235 Use of estimating software 237 Methods of estimating 240 Reference 241 10 Competitive bidding 242 Summary 242 Introduction 242 Part 1: A brief review of bidding strategy 243 Part 2: The importance of accuracy in estimating 250 Part 3: Some ways of using the existing theories 257 Recent developments in bidding 263 Client evaluation of bids 265 References 266 11 Company budgetary control 268 Summary 268 Introduction 268 Preparation of budgets 269 The carbon footprint 275 12 Cash flow and interim valuations 277 Summary 277 Introduction 277 The need for cash flow forecasting by contractors 277 The requirements of a forecasting system 279 Capital lock-up 284 The factors that affect capital lock-up 285 Interim valuations and cash flow 289 Measurement of work in activities 293 Computers and cash flow 294 Cash flow forecast by standardised models 296 Concluding remarks 297 References 297 13 Economic assessments 298 Summary 298 Introduction 298 Interest 300 Economic comparisons 303 Profitability measures 305 Inflation 310 Accuracy of future estimates 314 Financial modelling 319 Cost-benefit analysis 323 Some worked examples 324 Appendix 13.A: Tabulations of interest and time relationships 332 Section 3: Administration and company management 335 14 Company organisation 337 Summary 337 Introduction 337 The function of a manager 337 Company organisational structures 339 Departments/functions 348 Health, safety, occupational welfare and pensions 356 Educational qualifications and vocational training 358 Corporate Social Responsibility 365 Management attitude 366 Reference 368 15 Market planning and business development 369 Summary 369 Introduction 369 Market planning 369 The business-development process 370 References 381 16 International construction logistics and risks 382 Summary 382 Introduction 382 The international environment 383 Conclusions 389 17 Information resources and ICT systems 390 Summary 390 Introduction 390 The construction company?s business 390 Processes involved in construction business 391 Information needs to support business processes 393 Management of contractors? information resources 394 Construction information systems 397 The construction information manager 400 ICT in construction 401 ICT change within construction 402 Enablers of current construction IT 402 Using ICT resources in construction 403 Construction in a wireless world 414 Information security 415 18 Financial management 416 Summary 416 Introduction 416 Types of businesses 417 Types of capital 421 The control of capital 426 The company accounts 430 Regulatory authorities 444 References 445 Section 4: Self-learning exercises (solutions to the questions are provided on the book?s companion website) 447 19 Questions ? construction management 449 Questions 451 20 Questions ? operational research (OR) 499 Summary 499 Questions 501 21 Questions ? Six Sigma 511 Six Sigma 512 Problems 512 Reference 531 Bibliography 533 Abbreviations and acronyms 543 Index 548

About the Author

Frank Harris, BEng, MSc, PhD, DSc, CEng, MICE, FCIOB isEmeritus Professor of Construction Science at the University ofWolverhampton. Ronald McCaffer, BSc, PhD, DSc, FREng, FRSE, FICE,FCIOB, is Emeritus Professor of Construction Management atLoughborough University. Francis Edum-Fotwe, BSc, MSc, PhD, MASCE is Lecturer inConstruction and Project Management at Loughborough University.


This is a comprehensive and in-depth book covering anevolving discipline that is undergoing a technologicalmodernisation, particularly with building informationmodelling. ( Civil Engineering , 1 August2014) Modern Construction Management is a textbook for advancedstudies in construction management. It is a substantial volume of572 pages with general descriptions, partly detailed texts,numerous examples and references. ( ConstructionManagement and Economics , 8 January 2014) I highly recommend the landmark and very modern bestpractices oriented textbook ModernConstruction Management, Seventh Edition by Frank Harris,Ph.D., and Ronald McCaffer, Ph.D., to any students and graduates incivil engineering, construction management, building and quantitysurveying, corporate leaders, and government policy makers seekinga clear and all encompassing guide to the current business,technical, environmental, and societal issues and challenges ofmodern construction management. This book is a tremendous startingpoint for students and professionals at any level of constructionproject management. ( Blog Business World , 10May 2013)

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