Designing Buildings - User contributions [en]

Contract management

2019-07-09T07:08:53Z

Theccmuk:

A contract is a promise or set of promises which the law will enforce.

Construction contracts typically relate to the supply of goods or services as part of the delivery of a built asset. Traditionally, suppliers might have been considered to be organisations contracted to provide physical supplies such as goods, materials, plant and so on, however, PAS 1192-2 now defines a supplier as any, ‘…provider of services or goods either directly to the employer or to another supplier in a supply chain’. The 'supply chain' is the interconnected hierarchy of suppliers.

Construction contracts are generally standard forms, modified standard forms or bespoke.

[https://theccm.co.uk/courses-page/contract-management/ Contract management] is the process of managing contracts that are made as part of the delivery of a built asset. It involves the creation, analysis and execution of contracts by the parties to those contracts to ensure operational and financial performance is maximised, and risks are minimised.

Contract management can categorised into three phases:

* Pre-contract phase: Tenders documents are prepared, tenders are sought and contract negotiation is undertaken (see contract conditions and contract negotiation for more information).
* Contract execution phase: The final contract documents are prepared for execution (see contract engrossment for more information).
* Post-award phase: Compliance with conditions of the contract.

A contract manager might be identified to manage one, or several contracts, or to work as part of a team of contract managers. On large, complex projects, involving several contracts (such as a construction management project) a consultant might be appointed to perform the role of contract manager.

This role might include:

* Assessing the needs of the business or project.
* Assessing the market.
* Risk assessment.
* Determining procurement methods and tender assessment criteria.
* Preparing a contract management strategy.
* Preparing budgets and cost estimates.
* Preparing programmes.
* Selecting the form of contract.
* Preparing tender documents.
* Seeking tenders.
* Negotiating contract conditions.
* Contract engrossment and execution.
* Briefing project teams, contractors and suppliers.
* Being the point of contact for the parties to the contract.
* Relationship management.
* Contract administration.
* Managing variations to the works.
* Supplying information to resolve disputes.
* Preparing information for the completion of contracts.

Contract managers should:

* Be able to manage multiple projects.
* Have a good knowledge of construction activities and technologies.
* Have a good knowledge of contract law.
* Have good maths and IT skills.
* Be good at problem-solving.
* Be good at negotiating.
* Have good communication and presentation skills.

An effective contract management strategy can bring a number for benefits to this process:

* Expected business benefits and financial returns are more likely to be realised.
* Good working relations can be maintained with contract partners and subcontractors, and so there is a reduced risk of disputes and a higher chance of repeat work.
* There are fewer unforeseen events.
* Contract partners, subcontractors and suppliers are likely to be more cooperative and responsive.

Contract management can be a complex process, which can be simplified with the use of contract management software. This can be particularly helpful for contract management involving multiple contracts and multiple parties, creating integrated systems for; document management, change control, relationship management, accounting, project management, contract administration, resource allocation and so on. Specialist software is available for different types of contract management, such as large contracts, small contracts, multiple contracts, civil engineering and so on.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Breach of contract.
* Construction contract.
* Contract administrator.
* Contract conditions.
* Contract execution.
* Contract negotiation.
* Engrossment.
* Essentials of a contract.
* Form of tender.
* Modifying clauses in standard forms of contract.
* Supply chain management.

[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]] [[Category:Roles_/_services]]

Project manager

2019-07-09T07:07:57Z

Theccmuk:

{|
| [[File:PM_graphic.jpg|link=File:PM_graphic.jpg]]
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A [https://theccm.co.uk/courses-page/project-management-course/ project manager] (sometimes referred to as a promoter's manager or project director) is a specialist advisor that represents the client and is responsible for the day-to-day management of a project.

They seldom participate directly in activities that produce the end result but rather strive to maintain the progress and mutual interaction of the project team in such a way that reduces the risk of failure, maximises benefits and controls cost.

If a project manager is appointed, they function most effectively when they operate as if they were part of the client organisation. They are not part of the consultant team. They should be able to issue instructions and review progress as if they were the client. During the briefing process however the project manager should allow the consultant team direct access to the client and user panels without interference.

Experienced clients may have their own in-house project managers.

The project manager should be appointed as early as possible in the development of the project in order to:

* Help the client develop their preliminary business case and initial strategic brief.
* Advise on the selection and appointment of the consultant team (and perhaps to manage the appointment process).
* Help the client to organise themselves and identify the roles and responsibilities of client representatives, champions and user panels.
* Issue information and instructions on behalf of the client.
* Develop a project execution plan, including selection of procurement route and contracts.
* Contribute to risk management exercises.
* Contribute to value management exercises.
* Contribute to design reviews.
* Advise on the selection of contractors.
* Validate payments.
* Oversee change control procedures.
* Advise on disputes.
* Monitor and assess overall client programmes and cost plans (which may include items beyond the scope of the main contract or consultant's appointments).
* Advise on the transition from construction to occupation.
* Report to the client.

The success of a project manager is generally reliant on the effectiveness of the specific individual appointed rather that the reputation of the company they work for. It is important therefore that the individual selected is named in the appointment document and that they cannot be substituted without the agreement of the client.

The required characteristics of an effective project manager are:

* An ability to solve problems with intellectual rigour.
* Energy coupled with the ability to inspire others.
* Confident leadership and communication skills.
* Capability of seeing the whole picture.
* Good negotiating skills.
* They understand the meaning of 'collaboration'.

On publicly-funded projects, a project manager might be appointed from the private sector, or an experienced project sponsor might act as project manager. The Office of Government Commerce (OGC) guidance describes the project manager as,

...the named individual (often from the private sector) responsible for the day-today detailed management of the project and who provides the interface between the project sponsor and the supplier members of the project team.

(Ref. [http://webarchive.nationalarchives.gov.uk/20100503135839/http://www.ogc.gov.uk/documents/CP0062AEGuide2.pdf Achieving Excellence in Construction Procurement Guide: Project organisation, roles and responsibilities.])

The position of the project manager within the overall project organisation is illustrated below:

[[File:Project_organisation.JPG|link=File:Project_organisation.JPG]]

= Related articles on Designing Buildings Wiki =

* Business administration.
* Change control procedures.
* Client design advisor.
* Code of practice for project management.
* Code of practice for programme management.
* Commercial management.
* Commercial manager.
* Construction project.
* Construction project manager - morning tasks.
* Contingency theory.
* David Trench - A career in projects.
* Design management.
* Design reviews.
* Game theory.
* General foreman.
* Independent client advisor.
* Interview with Stephen Trench - Project manager.
* Lead consultant.
* Lead designer.
* Milestones.
* Monte Carlo simulation.
* Pareto analysis.
* Preliminary business case.
* Project execution plan.
* Project manager's report.
* Project monitoring.
* Project sponsor.
* Risk management.
* Strategic brief.
* User panels.

=== External references ===

* [http://www.apm.org.uk Association for Project Management].
* PACE [http://webarchive.nationalarchives.gov.uk/20100503135839/http://www.ogc.gov.uk/documents/PACE_-_GACC.pdf Guidance on the Appointment of Contractors and Consultants] P533 and 74.
* OGC AE5:[http://webarchive.nationalarchives.gov.uk/20100503135839/http://www.ogc.gov.uk/documents/CP0062AEGuide2.pdf The integrated project team] for details of OGC project manager role.
* [https://www.projectcubicle.com/skills-needed-for-project-managers/ Skills Needed For Project Managers]

[[Category:Roles_/_services]]

Construction manager

2019-07-09T07:07:10Z

Theccmuk:

[https://theccm.co.uk/courses-page/construction-management/ Construction management] is a procurement route in which the works are constructed by a number of different trade contractors. These trade contractors are contracted to the client but managed by a construction manager (CM).

The employer places a direct contract with each of the trade contractors and utilises the expertise of a construction managers who acts as a consultant to coordinate the contracts. The trade contractors carry out the work and the construction managers supervises the construction process and coordinates the design team. The CM has no contractual links with the trade contractors or members of the design team. Their role includes preparation of the programme, determining requirements for site facilities, breaking down the project into suitable works packages, obtaining and evaluating tenders, co-ordinating and supervising the works.

Construction management differs from management contracting, in that management contractors place contracts with works contractors (equivalent to trade contractors in construction management) direct, whereas construction managers only manage the trade contracts, the contracts are placed by the client.

Construction managers are effectively acting as a consultant to the client, the client takes the risk for the trade contractors' performance. In legal terms the management contractor is acting as a principal whereas the construction manager is acting as an agent.

As the client is required to place and administer the trade contracts (of which there may be a large number) and perhaps to accept price uncertainty, construction management is only appropriate for experienced clients.

The construction manager is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging, the risks of interfaces between packages, and the selection of trade contractors. Construction manager's are often appointed at the end of the concept design stage.

Appointing a construction manager enables some trade packages to be tendered earlier than others, and sometimes, even before the design is completed. For example, piling might commence whilst the detailed design of above ground works continues. This can shorten the time taken to complete the project, however, it means that there will be price uncertainty until the design is complete and all contracts have been let.

The services provided by a construction manager might include:

* Advising on the development of the brief (if appointed at this stage).
* Advising on the procurement route.
* Advising on appointments (such as site inspectors).
* Advising on the feasibility, interfaces, buildability, cost and programming of the design.
* Advising on statutory approvals.
* Defining key performance indicators for trade contractors.
* Advising on the need for mock ups, samples, tests and inspections.
* Acting as the principal contractor.
* Cost planning and cost control.
* Preparing a construction programme and defining methods of working on site.
* Identifying potential trade contracts.
* Tendering trade contracts.
* Consenting to sub-contracting of work by trade contractors.
* Arranging for site accommodation, welfare facilities, fences, hoardings, roads and walkways, drainage, power and water supply.
* Co-ordinating setting out.
* Arranging labour for certain site activities (such as cleaning).
* Managing site inspectors.
* Co-ordinating the release of information.
* Managing and co-ordinating trade contracts, including acting as contract administrator, carrying out or co-ordinating inspections, issuing instructions and certificates, etc.
* Co-ordinating the work of statutory undertakers.
* Witnessing tests and co-ordinating commissioning.
* Collating as-built information, building owner's manual, building user's handbook, project handbook, health and safety file, pre-construction information and construction phase plan.
* Monitoring key performance indicators.
* Managing the site.
* Chairing site progress meetings and preparing progress reports for the client.

Construction managers are likely to be paid based on reimbursable costs (such as site facilities, staff costs, statutory fees, offices, and so on), and a management fee, comprising pre-construction and construction fees, which may be fixed, or calculated based on an agreed formula. It is important to establish what is included in the construction manager's price (for example, insurance requirements or payment of statutory fees) and to agree the limit of the construction manager's delegated authority in issuing instructions which affect the cost of the project.

As a construction manager performs a consultancy and management role (unlike a traditional contractor), their appointment may be on similar terms to the consultant team. They may be required to hold professional indemnity insurance and to provide collateral warranties for tenants, purchasers or funders, and collaborative working with the consultant team will be vital to the success of the project.

As construction managers tend to be appointed early in the project, their appointment is unlikely to include a completion date.

-----
When is it appropriate?

* On large, complex projects were the advantages of CM can be put to use e.g. upfront buildability knowledge, programme advise, specialist input from trade contractors
* Where early start on site is key
* Flexibility in design, procurement, construction strategy
* Where price certainty before commencement is not key
* Where the client is experienced in construction

-----
What are the advantages?

* Overall project duration reduced by overlapping design and construction
* Construction manager can contribute to the design and project planning processes
* Roles, risks and relationships for all parties are clear
* Changes in design can be accommodated without paying a premium
* Prices may be lower due to direct contracts with trade contractors
* Client has means of redress to trade contractors through direct contractual links

What are the disadvantages?

* Price certainty not achieved until last trade package is let
* Changes to later packages may adversely affect packages already let - expensive
* Need an informed, pro active client
* Client has a lot of consultants and contractors to deal with – not just one – more fees

NB: The Chartered Institute of Building (CIOB) created a new profession of 'Chartered Construction Manager' in 2013. CIOB's use of the term 'construction manager' is a much broader one than the contractual definition described above. They describe construction management as, 'Management of the development, conservation and improvement of the built environment'. This might involve any role managing construction activities, rather than the specific role of managing trade contractors who are contracted to the client.

= Related articles on Designing Buildings Wiki =

* Construction management: outline work plan.
* Collaborative practices.
* Collateral warranties.
* Commercial manager.
* Construction manager at-risk.
* Construction management contract.
* Construction management: outline work plan.
* Contractor.
* Early contractor involvement.
* How to become a construction manager.
* Management contractor.
* Managing the procurement process.
* Pre-Construction Services Agreement.
* Principal contractor.
* Procurement route.
* Professional indemnity insurance.
* Resource management.
* Sub-agent.
* Subcontractor.
* Time management of construction projects.
* Trade contractor.
* Traditional contractor.
* Types of contractor.

[[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Procurement]] [[Category:Roles_/_services]]

Quantity surveyor

2019-07-09T07:06:29Z

Theccmuk:

= Role =

[https://theccm.co.uk/courses-page/quantity-surveyor-course/ Quantity surveyors] (sometimes referred to as cost consultants or commercial managers) provide expert advice on construction costs. They help to ensure that proposed projects are affordable and offer good value for money, helping the client and the design team assess and compare different options, and then track variations, ensuring that costs remain under control as the project progresses. Quantity surveyors can specialise in a specific aspect of construction costs, or in a particular type of construction.

Tasks will vary depending on the nature of the project, but they might include:

* Helping determine the client's requirements and undertaking feasibility studies.
* Benchmarking requirements against similar projects.
* Assessing and comparing options.
* Helping define the project budget.
* Checking developing designs against the project budget.
* Assessing value for money.
* Checking designs meet legal and quality standards.
* Undertaking risk management and value management exercises.
* Preparing cost plans, estimates and cash flow projections.
* Advising on procurement strategy.
* Advising on packaging.
* Preparing bills of quantities.
* Preparing tender pricing documents.
* Collating and issuing tender documentation.
* Assessing tenders.
* Estimating the cost of variations.
* Preparing valuation statements for interim certificates.
* Assisting with the valuation of claims.
* Preparing regular cost reports, including out-turn cost and cash flow.
* Completing the final account.

Specialist activities might include:

* Allocating work to subcontractors (if working for the contractor).
* Advising on tax issues.
* Advising on facilities management.
* Life cycle costing.
* Obtaining funding.
* Advising on repairs and maintenance costs.
* Advising on specialist construction works and building types.

For further information, see Quantity surveyor’s fees.

= Qualification =

To become a Chartered Quantity Surveyor a degree or professional qualification accredited by the Royal Institution for Chartered Surveyors (RICS) is generally required, or trainees can study part-time whilst working in a technician role. Chartered Quantity Surveyor's must pass an Assessment of Professional Competence (APC) and become a member of the Royal Institution of Chartered Surveyors (RICS).

The RICS 'Black Book' provides a set of standards by which RICS members should operate.

The RICS provide a [http://www.ricsfirms.com/ finder service] to help find quantity surveyors appropriate for different types of work.

NB: Whilst cost consultants on construction projects are generally quantity surveyors by profession, accountants and other professionals can also prove effective.

To see some of the modules studied as part of quantity surveying degree courses, see Commercial management and Quantity surveying course essentials.

= Cost planning =

Cost plans evolve through the life of the project, developing in detail and accuracy as more information becomes available about the nature of the design, and then actual prices are provided by contractors and suppliers:

* Initial cost appraisal (studies of options prepared during the feasibility study stage).
* Elemental cost plan (prepared during the project brief stage and carried through to detailed design).
* Approximate quantities cost plan (from the end of detailed design through to tender).
* Pre-tender estimate (prepared alongside tender documentation).
* Tender pricing document (strictly speaking this is not a priced document, but is part of the tender documentation issued to the contractor for pricing).
* Contract sum (agreed with the contractor during the tender period and adjusted during the construction period).
* Contract sum analysis (a break down of the contract sum prepared by the contractor on design and build projects).
* Final account (agreed during the defects liability period).

Other than initial cost appraisals, these all relate to the construction cost of a project (rather than wider project costs that the client might incur, which could include; fees, equipment costs, furniture, the cost of moving staff, contracts outside of the main works and so on). It is important therefore that the client makes clear what costs should be monitored by the quantity surveyor and what will remain within the control of the client organisation.

Quantity surveyors rely on services such as Building Cost Information Service to help them determine accurate costs, and increasingly project information is generated from Building Information Modelling (BIM).

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Accounting.
* Appointing consultants.
* Bill of quantities.
* Chartered surveyor.
* Commercial manager.
* Common arrangement of work sections.
* Comparison of SMM7 with NRM2.
* Cost.
* Cost and bonus surveyor.
* Cost consultant.
* Cost plan.
* Estimator.
* Life cycle assessment.
* Measurement.
* New Rules of Measurement.
* Professional indemnity insurance.
* Quantity surveyor’s fees.
* Royal Institution of Chartered Surveyors.
* Surveyor.
* Sustainability quantity surveyor.
* Whole life costs.

[[Category:Cost_/_business_planning]] [[Category:Roles_/_services]]

Commercial management for construction businesses

2019-07-09T07:05:52Z

Theccmuk:

The Institute of Commercial Management (ICM) defines commercial management as: 'The identification and development of business opportunities and the profitable management of projects and contracts, from inception to completion.'

In construction, [https://theccm.co.uk/courses-page/commercial-management-2/ commercial management] generally refers to the overseeing and management of a project's finances as it progresses. It can also refer to the long-term management of business opportunities that will enable the organisation to develop and grow.

The commercial manager must maximise business potential in terms of growth and profitability, while monitoring and controlling internal processes as well as managing external relationships with subcontractors, clients, and so on.

Due to the complexity of valuing and costing construction projects, commercial management has developed into a technical discipline, most commonly undertaken by quantity surveyors. Often quantity surveyors progress to become commercial managers, with responsibility for a commercial team and reporting to the project manager.

A successful construction project is one that is delivered on time, to budget and at the required quality. Commercial managers balance these drivers with longer-term strategy of the business and the client's own commercial drivers. If a project achieves, or exceeds, the anticipated return for the business, with the client relationship maintained or improved, then the commercial management strategy will be seen to have been a success.

In its widest sense, commercial management can be considered to cover:

* Accounting.
* Assessment of financial viability.
* Budget planning, monitoring, and forecasting.
* Estimating, tendering and procurement.
* Cash flow forecasting.
* Contract administration, valuation, variations, disputes, claims and negotiation.
* Risk management and value management.
* Supply chain management.
* Business development and planning.

= Find out more =

=== Related articles on Designed Buildings Wiki ===

* Accounting.
* Budget.
* Business plan.
* Capital costs.
* Commercial manager.
* Commercial management and quantity surveying course essentials.
* Construction buyer.
* Consultant team for design and construction.
* Cost consultant.
* Cost engineering.
* Hiring an architect as a commercial client.
* Interview with Liam Huntley - Commercial Manager.
* Managing the procurement process.
* Payment.
* Project manager.
* Quantity surveyor.
* Turnover.
* Valuation of interim payments.
* Whole-life costs.

[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]] [[Category:Roles_/_services]]

CIOB join Build UK

2019-07-09T07:04:44Z

Theccmuk:

[[File:Ciobbuilduk.png|link=File:Ciobbuilduk.png]]

In February 2017, the Chartered Institute of Building (CIOB) announced they would be joining Build UK, becoming the first professional body member.

Build UK was formed in 2015 by a merger between the UK Contractors’ Group (UKCG) and the National Specialist Contractors' Council (NSCC) following calls from the government for a single, unified voice from the construction industry, combined with an increasing realisation that the UKCG and NSCC held similar positions in a number of key areas.

Build UK offers, ‘…a strong collective voice for the contracting supply chain in construction’, to ‘…improve conditions for the supply chain, the wider industry and its clients.’

In joining Build UK, [https://theccm.co.uk/courses-page/site-supervisory/ CIOB] are sending a message that a single strong voice is more important for the industry than maintaining a barrier between professional and commercial interests. Together they hope that such collaboration will help to change the whole industry for the better.

Traditionally, CIOB and other institutions have focused on promoting and developing professional standards with their own membership, whereas trade associations have been responsible for promoting the commercial and financial interests of their corporate members.

Earlier in 2017, CIOB, along with Stronger Together, developed a best practice toolkit for the industry to tackle modern slavery across the supply chain, which is supported by Build UK. Meanwhile, Build UK is leading on developing a strong united response on behalf of construction to Brexit.

Build UK Chief Executive Suzannah Nichol MBE said: “We are all behind the goal of delivering new homes, new infrastructure and more public and private buildings and we each have a role to play creating a successful Construction sector. By joining Build UK, CIOB demonstrates its forward thinking commitment to a better industry, and by working together we can really drive change across the industry.”

Chris Blythe OBE, Chief Executive of the CIOB, said: “We are delighted to add our voice and expertise to the Build UK chorus. The industry is at its best when it collaborates and that is something we need to reflect when we talk to government and clients. Our public benefit agenda and ambition to create a safer, more professional and rewarding career for those who join construction is sentiment shared by Build UK and together we can make an even bigger difference.”

--[[User:CIOB|CIOB]]

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* [[User:CIOB|Articles by CIOB on Designing Buildings Wiki.]]
* Build UK.
* Building a fairer system: Tackling modern day slavery.
* Construction industry institutes and associations.
* Productivity in construction: Creating a framework for the industry to thrive.
* Types of construction organisations.

[[Category:Organisations]] [[Category:News]]

Leadership on design and construction projects

2019-07-09T07:01:02Z

Theccmuk:

See also: Leadership styles.

[https://theccm.co.uk/ Leadership is as important] to the internal culture of construction organisations as it is in any other sector. Effective leadership is vital if a client’s needs are to be met and business improvement is to be maintained.

Leadership is a complex process that encompasses a wide range of behaviours, styles and traits, but the aim of leadership at its most simple is to successfully influence others to accomplish an objective.

There [https://theccm.co.uk/courses-page/cmi-level-7-strategic-management-and-leadership/ concepts of management and leadership] are often confused. Managers tend to employ what are termed ‘hard skills’, i.e. planning, directing, organising, and so on. They are occupied with establishing clear targets, driving correct and best practice and making short-term decisions and plans. Whereas, leaders tend to employ ‘soft skills’, i.e. guiding, influencing, motivating, risk-taking, innovating and have a longer-term perspective.

Daniel Goleman popularised the theory that effective leaders have a high degree of emotional intelligence, with four key characteristics:

* Self-awareness.
* Self-management.
* Social awareness.
* Relationship management.

Other commonly cited traits of effective leadership include:

* Enthusiasm.
* Champion of change.
* Good communicator.
* Risk-tolerant.
* Visionary.
* Brave.
* Motivational/inspirational.
* Leads by example.
* Good delegator.
* Open to advice and other opinions.

It has been argued that the ‘ideal leader’ does not exist, and rather it is the combination of different factors dependent on the specific circumstance of the organisation or project that contribute to a strong leadership style.

In relation to construction, Chan’s 2008 case study involving 15 industry leaders identified three instrumental factors in leadership development; people, places and events.

The 1998 Egan Report ‘Rethinking Construction’ identified ‘committed leadership’ as one of five key drivers of change for the industry. Egan defined this as follows:

‘Management believing in, and being totally committed to, driving forward an agenda for improvement and communicating the required cultural and operational changes throughout the whole of the organisation. In construction, there is no part of the industry which can escape this requirement: it affects constructors, suppliers and designers alike.’

A 2008 report called [https://theccm.co.uk/courses-page/cmi-level-7-strategic-management-and-leadership/ ‘Leadership in the construction industry’] by CIOB found that there was a stark lack of leadership within the industry. Research suggested that within larger construction companies, 18% were not developing their leaders in any way, and 45% had no formal succession plan or leadership strategy.

= Related articles on Designing Buildings Wiki =

* Construction organisations and strategy.
* Egan Report.
* Integrated project team.
* Leadership styles.
* Project manager.
* Recruiting and retaining talent in the construction industry.
* Relationship management.
* Team building.
* Thought leadership.

= External references =

* [https://www.projectcubicle.com/leadership-styles/ Leadership Styles]

[[Category:Theory]] [[Category:Construction_management]] [[Category:Roles_/_services]]