Construction Management
What is Construction Management?
A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and the required deliverables.
Key formula / rule: PERT Expected Time
Key points
- Understand the principles of construction project management.
- Learn techniques for planning, scheduling, and controlling construction activities.
- Develop skills in cost estimation, budgeting, and financial control.
- Appreciate the importance of quality, safety, and risk management in construction.
Common exam trap
Inadequate planning and scope definition.
Definitions
- Term
Work Breakdown Structure (WBS)
- Meaning
A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and the required deliverables.
- Term
Critical Path Method (CPM)
- Meaning
A project management technique used to identify the sequence of project activities that determines the shortest possible project duration.
- Term
Program Evaluation Review Technique (PERT)
- Meaning
A project management technique that uses a three-point estimate to determine the expected duration of activities, particularly useful for projects with uncertain activity durations.
- Term
Earned Value Management (EVM)
- Meaning
A project management technique that integrates scope, cost, and schedule to measure project performance and progress.
Learning objectives
Understand the principles of construction project management.
Learn techniques for planning, scheduling, and controlling construction activities.
Develop skills in cost estimation, budgeting, and financial control.
Appreciate the importance of quality, safety, and risk management in construction.
Gain knowledge of contract types and procurement methods.
Formulae
- Name
PERT Expected Time
- Note
Where O = Optimistic time, M = Most Likely time, P = Pessimistic time.
- Expression
Te = (O + 4M + P) / 6
- Name
PERT Variance
- Note
Standard deviation σ = (P - O) / 6.
- Expression
σ² = ((P - O) / 6)²
- Name
Schedule Variance (EVM)
- Note
Positive SV indicates ahead of schedule, negative SV indicates behind schedule.
- Expression
SV = EV - PV
- Name
Cost Variance (EVM)
- Note
Positive CV indicates under budget, negative CV indicates over budget.
- Expression
CV = EV - AC
- Name
Schedule Performance Index (SPI)
- Note
SPI > 1 indicates ahead of schedule, SPI < 1 indicates behind schedule.
- Expression
SPI = EV / PV
- Name
Cost Performance Index (CPI)
- Note
CPI > 1 indicates under budget, CPI < 1 indicates over budget.
- Expression
CPI = EV / AC
Prerequisites
Basic understanding of construction processes and materials.
Knowledge of project management principles.
Familiarity with engineering drawing and specifications.
Common mistakes
Inadequate planning and scope definition.
Poor cost estimation leading to budget overruns.
Insufficient attention to safety protocols.
Lack of effective communication among stakeholders.
Failure to manage risks proactively.
Inadequate quality control measures.
Keywords
Construction Management
Project Planning
Scheduling
CPM
PERT
Cost Control
Resource Management
Quality Assurance
Safety Management
Contract Administration
Earned Value Management
Work Breakdown Structure
Practice preview
In which type of construction contract does the contractor agree to complete the entire project for a single, fixed price, regardless of actual costs incurred?…
easy
Which of the following best describes the primary goal of resource leveling in construction project management?…
medium
A contractor identifies a high probability of a significant increase in raw material prices for a large, long-term project. Which of the following risk response strategies would be most appropriate to mitigate this speci…
hard