CIV324 Week 1

Jan 13, 2012

Part 1: Sustainability and the project
lifecycle
Part 2: The construction project and its
management

M. Hatzopoulou

SUSTAINABLE DEVELOPMENT
Development that meets the needs of the present without
compromising the ability of future generations to meet their
own needs (WCED in the Brundtland report, 1987)
Emphasizes 3 main goals &
balances 3 tradeoffs:
(Feitelson, 2002)

Can we measure sustainability?

What is a sustainable system?
When does a system become unsustainable?
In breaching a systems steady-state, which level leads to
unpredictable consequences?
Most natural processes are in dynamic equilibrium; when a change
exceeds natures capacity to assimilate it shift from equilibrium
Shift may remain latent until the final limits of old steady-state are
reached sudden chaotic state
Properties of new equilibrium are unpredictable
When assessing sustainability of a sub-system, cannot measure
sustainability in absolute terms Need to measure sustainability
against targets or across alternatives

Business and the sustainability

challenge
2002 PriceWaterhouseCoopers Sustainability Survey revealed:
Of the 101 Fortune 1000 companies that were interviewed, 72%
do not include the risk or opportunities of sustainability in their
projects
Traditional business management systems are solely geared
towards financial performance
Companies are increasingly responsible for the sustainability
impacts of an implemented project beyond the normally
considered project lifecycle
Labuschagne, C. And Brent, A.C. 2005.
Sustainable project lifecycle management:
The need to integrate life cycles in the
manufacturing sector. International Journal of
Project Management, 23: 159-168.

Project vs. Asset Lifecycle

A project is an activity with a start and end points intended to
produce an asset or a service
It is not the project that has the most significant environmental,
social, economic impacts but the product or asset generated by
this project
The project normally ends after the asset commences stable
operations

Labuschagne and Brent, 2005

Project vs. Asset Lifecycle

Labuschagne and Brent, 2005

Project vs. Asset Lifecycle

Aligning project management methodology
with the principles of sustainable
development therefore requires that the
sustainability consequences of the asset
lifecycle must be considered during the
project lifecycle
Adapted from: Labuschagne and Brent, 2005

Sustainability evaluation framework to assess projects

during the early lifecycle phases in terms of the
sustainability impacts of future implemented assets

Labuschagne and Brent, 2005

Labuschagne and Brent, 2005 propose a set of indicators:

Labuschagne and Brent, 2005 propose a set of indicators:

The Construction
Project Lifecycle

Chris Hendrickson, Project Management for

Construction. Department of Civil and
Environmental Engineering, Carnegie Mellon
University, Pittsburgh, 1998. Available from
http://pmbook.ce.cmu.edu/index.html.

The Project Lifecycle

Describes a process through which a project is implemented
from cradle to grave. This implies:
Concerns over lifecycle costs rather than initial costs
Concerns over lifecycle environmental and social impacts
Concerns over coordination between a range of experts
and stakeholder involvement

C. Hendrickson, 1998.

Conceptual planning and feasibility stage is critical

for implementing sustainable construction
management practice
Project feasibility is traditionally conducted by considering
financial issues, such as return on investment, demand and
supply in the market, risk analysis on the market conditions
A proper and effective feasibility study should involve more
than just a set of financial projections
Feasibility study establishes a road map for all subsequent
decisions

CASE STUDY: Sustainability evaluation in feasibility

studies (Shen et al., 2010)
Collected 87 feasibility study reports in 2008 and 2009 for 29
residential projects, 27 public sector projects, 20 industrial projects,
and 11 commercial projects
Reports collected in three Chinese cities: Beijing, Shenzhen and
Chongqing
Research team interviewed project managers, construction
managers, site foremen, site engineers, site surveyors and frontline
workers for a number of selected surveyed projects.

Research team is looking for information on the practice of

addressing social, economic and environmental issues in
conducting feasibility studies
Shen, L.Y. et al. 2010. Project feasibility study: The key to
successful implementation of sustainable and socially
responsible construction management practice. Journal of
Cleaner Production, 18: 254-259.

Shen et al., 2010

CASE STUDY: Sustainability evaluation in feasibility

studies (Shen et al., 2010)
Majority of the projects did not properly address the
environmental performance attributes
Only public sector and industrial projects mentioned
evaluating air impacts, water impacts, noise
assessment, waste assessment and environmental
friendly design
As implementing construction projects has been a driving
force to the economic growth in China over previous two
decades, the effects of the construction industry on the
degrading environment has been significant

CASE STUDY: Sustainability evaluation in feasibility

studies (Shen et al., 2010)
No social performance attributes were considered in the
surveyed residential, industrial and commercial projects.
Social responsibilities have not been given due consideration
in developing non-public projects in China
Even for public sector projects, many social performance
elements are overlooked
Even a factor such as safety standard has not been properly
considered in the project feasibility study.

BREAK
(10 min)

Range of professional services involved in a

typical construction project
In class exercise: Explain the services offered by each of the
following actors and identify the project stage at which they are
the most involved:
Financial Planning Consultants
Architectural and Engineering Firms
Contractors
Design/Construct Firms
Professional Construction Managers
Operation and Maintenance Managers
Facilities Management
C. Hendrickson, 1998.

Range of professional services involved in a

typical construction project

Financial Planning Consultants

Evaluate the economic and financial feasibility of the constructed facility

Architectural and Engineering Firms AND Contractors

The A/E firm completes the design and may also provide on site quality inspection
during construction to insure satisfactory results
This traditional approach has become less popular particularly for large scale
projects
The A/E firms have become more isolated from the construction process because
of pressures to reduce fees to A/E firms, the threat of litigation regarding
construction defects, and lack of knowledge of new construction techniques on
the part of architect and engineering professionals
Many A/E firms are no longer responsible for the details of construction nor do
they provide periodic field inspection in many cases. A/E firm and the general
contractor on a project often become antagonists
C. Hendrickson, 1998.

Range of professional services involved in a

typical construction project

Design/Construct Firms
By integrating design and construction in a single organization, many of the
conflicts between designers and constructors might be avoided. Designs will be
closely scrutinized for their constructibility. One of the most obvious advantages
of the integrated design/construct process is the use of phased construction for a
large project: After the completion of the design of the first phase, construction
can begin without waiting for the completion of the design of the second phase.

Professional Construction Managers

A new breed of construction managers offering professional services from the
inception to the completion of a construction project. These construction
managers mostly come from the ranks of A/E firms .

C. Hendrickson, 1998.

Range of professional services involved in a

typical construction project

Operation and Maintenance Managers

Although many owners keep a permanent staff for the operation and
maintenance of constructed facilities, others may prefer to contract such tasks to
professional managers.

Facilities Management
Facilities management involves planning, designing, constructing and managing
space. All firms entering into these new services have strong computer
capabilities and heavy computer investments. In addition to the use of computers
for aiding design and monitoring construction, the service includes the
compilation of a computer record of building plans that can be turned over at the
end of construction to the facilities management group of the owner.

C. Hendrickson, 1998.

The Role of Project Managers

In the project lifecycle, the most influential factors affecting the
outcome of the project often reside at the early stages

Figure 2-3: Ability to Influence Construction Cost Over Time

C. Hendrickson, 1998.

The Role of Project Managers

In the project lifecycle, the most influential factors affecting the
outcome of the project often reside at the early stages

At this point, decisions should be based on competent economic

evaluation with consideration for adequate financing, the
prevalent social and regulatory environment, and technological
considerations
As engineers advance professionally, they often spend as much or
more time on planning, management and other economic or
social problems as on the traditional engineering design and
analysis which form the core of most educational programs
C. Hendrickson, 1998.

Two basic approaches to organize for project

implementation
Separation of organizations
Numerous organizations act as consultants or contractors to the owner
Traditional Designer-Constructor sequence
Professional construction management
Integration of organizations
A single or joint venture consisting of a number of organizations with a
single command undertakes both design and construction
Owner-builder operation
Turnkey operation

C. Hendrickson, 1998.

Organization of project participants

Traditional Designer-Constructor sequence
Designer (an architectural/engineering firm) prepares the detailed plans
and specifications for the constructor (a general contractor)
The owner negotiates the fee for service with the A/E firm
Owner selects a general constructor either through competitive bidding or
through negotiation Detailed plans and specifications must be ready
before inviting bidders to submit their bids
The general contractor may choose to perform the construction work, or
act only as a manager by subcontracting all the construction to
subcontractors
The general contractor may ask a number of subcontractors to quote
prices for the subcontracts before submitting its bid to the owner (may
lead to practices known as bid shopping and bid peddling)
HOMEWORK: In up-to 5 power-point slides, define these 2 practices and
highlight their legal consequences. Cite the reference(s) you used.
C. Hendrickson, 1998.

Organization of project participants

Professional construction management
Firm specialized in the practice of professional construction management
Work with owner and the A/E firms from the beginning and make
recommendations on design improvements, construction technology,
schedules and construction economy
Propose design and construction alternatives and analyze the effects of
the alternatives on the project cost and schedule
Monitor subsequent development of the project
Coordinate procurement of material and equipment and the work of all
construction contractors, and monthly payments to contractors
Usually used when a project is very large or complex

C. Hendrickson, 1998.

Organization of project participants

Owner-builder operation
In this approach an owner must have a steady flow of on-going projects in
order to maintain a large work force for in-house operation
Turnkey operation
Owners delegate all responsibilities of design and construction to outside
consultants. A contractor agrees to provide the completed facility on the
basis of performance specifications set forth by the owner. The contractor
may even assume the responsibility of operating the project
This approach is the direct opposite of the owner-builder approach

C. Hendrickson, 1998.

NEXT WEEKs DEBATES (2 debates)

Two teams of 3 students (each) will argue in favour of AND Against the
traditional designer-constructor sequence

Team PRO-1
Member 1: Jamie
Member 2: Marie
Member 3: Rachel

- TEAM PRO-2
Member 1: Leigh
Member 2: Martin L.
Member 3: Sophia

Team AGAINST-1
Member 1: Bernard
Member 2: Martin
Member 3: Lila

- TEAM AGAINST-2
Member 1: Thomas
Member 2: Antoine
Member 3: Samy

C. Hendrickson, 1998.

Organization for the management of projects

A matrix organization

C. Hendrickson, 1998.

Organization for the management of projects

A project-oriented organization

HOMEWORK: In up-to 5 power-point slides, identify the main differences

between a matrix organization and a project-oriented organization.
C. Hendrickson, 1998.
Cite the reference(s) you used.