Construction

Ethics

A constructor shall:
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Have full regard to public interest in fulfilling his/her professional

responsibilities
Not engage in any deceptive practice, or in any practice that
creates an unfair advantage for the member or another
Not maliciously or recklessly injure or attempt to injure the
professional reputation of others
Ensure that when providing a service that includes advice,
such advice is fair and unbiased
Not divulge to any person, firm, or company, information of a
confidential nature acquired during the course of professional
activities
Carry out his or her responsibilities in accordance with current
professional practice
Keep informed of new concepts and developments in the
construction process appropriate to the type and level of his or
her responsibilities

The Way to Success!

Increased Productivity wins the day!
Embrace new technologies
Use innovative processes
Collaborative partnering
Improve Safety
Reduce litigation costs
Governmental Regulations targeted at the construction industry
have impeded productivity
Number of people employed by regulatory agencies has
increased from the 70,000 employed in 1970 to over
140,000
Regulatory spending has increased from the $1.4 billion
spent in 1976 to over $16 billion

Computer Innovations
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AutoCAD files can now be input into third-party estimating

programs that can extract volumes, areas, and quantities
Building Information Modeling (BIM) allow designing in 3D
Estimates can be electronically linked to activities in a
project schedule to facilitate calculation of the value of work
in place
Electronically linking the project field office to the main
(home) office and design consultants office for better
communication of up-to-date design changes, schedules,
and varieties of information
Ideally, making supplier data bases electronically available
to designers and constructors allowing them to extract
specifications, pricing, and availability.
Ideally, with full integration, project information can move
instantly, without the delays of snail mail, air travel, or
meetings

Who are the Players?

Construction projects are born

from ideas, which are then
translated into graphical form,
which in turn are transformed into
the finished product
The idea is defined by an owner
The idea is developed by a designer
The idea is brought into being by a
CONSTRUCTOR
Owner - The guy with the bucks
Designer - The guy with the brains
Constructor - The guy with the hardhat,
pickup truck, and backhoe with the sense
to get out of the rain and mud!

The Owner

Someone with a NEED to be fulfilled!

A family looking for a new home

A large corporation responding to a change in
technology
The City wanting to build a better transportation system
The UH wanting new dorms, more parking, more. . . . .
A developer looking to fulfill a market need and make a
buck (so he can get a new home)

Owner must come up with the financing!

The Public Owner

25% of the construction in U.S. is done with public money
This means City, State, Federal agencies, but the bottom line . .
The public owner is you and me, the taxpayer

Because these agencies represent the public:

Public approval processes have to be considered in schedule and
budgets
How the designer and constructor are selected is carefully spelled
out
Administration must be done according to specified guidelines
Negotiation of claims is well defined
How payments are issued must be clear
Damages for late completion must be detailed
Detailed records must be kept
The Owners representative must be well versed in all of the above

The Private Owner

75% of the construction in U.S. is done with private money
The individual homeowner who builds one house for himself
Multinational conglomerates who build and own a myriad of
facilities
A large owner group could have an entire staff of people
represent them during the design and construction phase

A developer is a specific type of private owner

Usually only owns the project for the duration of the construction
phase or shortly thereafter
Looks for economic opportunity and puts together a development
package that includes marketing, financing, location, and image.
Goal: Make a profit either by quick sales or long-term rental/lease

What gets built?

Residential 47% Individual homes, small

condos, apartment complexes
Commercial Buildings 31% Offices, large
condos, shopping malls, schools
Infrastructure (Heavy) 17% Roads, bridges,
dams, tunnels
Industrial 5% Refineries, Chemical Plants, Auto
Plants

Owner Concerns

Will needs be met within the limits of available

financing?
Should outside consultants be hired to manage the
construction project?
While designers focus on functionality, aesthetics,
and innovative use of materials, Owners are
concerned about durability of the design, availability
of materials, simplicity of operation, and ease of
maintenance
While the constructors focus on maintaining the
schedule and budget through efficiency and
improved management techniques, Owners are
concerned about a turnover process that ensures
complete understanding of all the systems in the
project and a smooth startup

The Design Professionals

Architects and Engineers
Architects are usually the lead for building and residential
projects laying out the concept on paper for the owner
Engineers then help with the details by designing the
building systems (structural, mechanical, electrical,
general civil, and surveyors)
Engineers are usually the lead on infrastructure and
industrial projects
Architects are brought in to work on aesthetics (interior
design and landscaping)
Architects approach design by identifying the important
elements of the design concept (physical context,
activities that will take place at the project, unique image)
Intuitive and Subjective process
May impart personal style into the design
Engineers tackle the challenge objectively by breaking it
down into identifiable components and apply a series of
design parameters.
Functionality is the center of focus

Although both must think creatively, mechanically, and

technically, architects work in the artistic realm while
engineers work in the technical realm

The Construction Professionals

In the past, company executives were once carpenters
or laborers and rose through the ranks.
Today, they are graduates of business schools or
people experienced in real estate or development
industries or with interdisciplinary degrees who are
supported by people with expertise in the details of
construction.
Project managers now have formal training in
construction management.
Superintendents and project engineers now have CE
degrees.
Constructors who in the past were only part of the
actual construction process now use the broadened
scope of their company expertise to become part of
a design/build team from concept to completion and
beyond.

Construction Manager Support Team

Estimators
Work with design drawings and prepare a list of ALL job
costs
Must understand the construction process
Must be well organized and detail oriented
Must have knowledge of costs for labor, materials, and
equipment
Must work well UNDER PRESSURE
Schedulers
Must understand the construction process
Must be able to define distinct construction activities
Must be able to understand the relationship between these
activities
Although a strong background in construction is desirable,
most learn their skill on the job!
Purchasing Agent
Subcontracts out specialty work (may negotiate if process
allows it)
Purchases required materials (including equipment to be
furnished to owner)

Evolution of the General Contractor

(GC)
GC used to directly hire the manpower and do most of the work
on a project directly, with the exception of subcontracted
mechanical and electrical items.
In-house superintendents, foremen, and lead personnel would
direct the GCs workforce in the performance of nearly all the
work.
As projects became more complex, specialty subcontractors
could produce a finished product with better quality at a
more economical price than the GC.
In-house superintendents, foremen, and lead personnel now
direct a smaller force of primarily carpenters and laborers to
perform the general work and oversee the specialty
subcontractors.
There is now reduced financial risk for the GC. Why?

Subcontractors must supply and pay their own workers

Subcontractors must supply and pay their own
materials and equipment

The Basic Trades

These are the people who perform the actual work.
The number of basic trades has increased along with the
complexity of a projects.
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Pl st r r
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Br c l y r

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The Other Players

The Material Suppliers
Material trade associations established a level of
quality and standardized characteristics
Developed criteria upon which an end-user could
rely
Choice of materials based on performance,
durability, aesthetics, and cost
The Equipment Suppliers
Earthmoving
Lifting
Light equipment
Bituminous
Concrete/Aggregate
Components / Attachments

At the Project
Project Manager
Configures project team, schedules the job, sets up costcontrols
Negotiates changes
Many years of experience, with solid administrative
knowledge, good verbal and written communication skills,
knowledge of labor issues and technical construction
Often graduated from construction management programs
Superintendent
Interacts with subcontractors
Coordinates flow of workers, materials, and equipment to
meet the schedule
Prioritizes work and handles job problems efficiently
Traditionally worked up the ladder from tradesperson to
management
Increasingly more are graduates from construction
management programs
Field Engineer
Recent graduate of civil engineering college
Handles documents flow through field office
Performs cost-control duties
Updates schedule

Once you establish the need!

Cost / Benefit Analysis

For commercial or profit-based project compare
estimated costs against projected revenues
For public and non-profit based projects you must
evaluate
Projected costs Light rail system for Honolulu
(dollars)
Tangible benefits Light rail system for Honolulu
(dollars)
Intangible benefits Light rail system for Honolulu
(?)
Conceptual Drawings and Cost Estimates
Preliminary and Detail Designs (with associated cost
estimates)

THE BID PROCESS

Notice to Bidders
Advertised or by invitation
Project name, bid date and time, bid location,
Owners name, Consultants name, short
description of the work, where plans, specs and bid
documents can be acquired (deposit may be
required for plans & specs)
Bid bond requirements
Performance and payment bond requirements
Time allotted for completion
Sometimes estimated cost of the project

THE BID PACKAGE

Proposal Form
Plans
Specifications
General Conditions
Special (supplementary) Conditions
Technical Provisions technical quality
expected
Addenda (if any, prior to bid opening date)
Homework due Sept 3rd

2.1- 2.6, 2.8, & 2.10