what is construction management

8/6/2019 What is Construction Management

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What is Construction Management?

Construction management is a professional field that focuses on each part of the construction

process of any built environment. Construction management typically encompasses commercial

building sites or multi-unit residential sites, but not usually single-family residential building sites.

Construction management of the site may be maintained by a general contractor or a separate

entity, and the construction management personnel or firm answers to the developer and is

responsible for overseeing every aspect of the project from start to finish.

The construction management field requires a minimum of four years in an undergraduate

program and may require a Masters in Construction Management for certain projects. Areas of

study for construction management include advanced math, design and construction laws,

architecture, estimating, accounting, and business. Construction is one of the single largest

industries in the United States and the outlook for careers in construction management is favorable.

Job opportunities exist both in the private sector and in government.

During a typical project, construction management personnel are responsible for overseeing each

phase of construction and resolving any discrepancies in original blueprint design and actual

implementation. Construction management personnel are also accountable for the cost of a project

and must control material and labor cost. They may work with one or more project managers,

architects, and site-specific superintendents, often in both an office and hardhat environment

simultaneously. In addition to overseeing the physical construction phases of a project,

construction management must also be familiar with design and construction laws -- including

OSHA regulations and building codes -- and serve as a point of contact for all issues. Equally

important is delivering each phase of a project within a given time frame and budget, right down to

the completed building or buildings.

Construction management firms vary in size, and some provide their services exclusively to smaller

general contractors. Large construction companies generally hire their own construction

management personnel. The earning potential for construction management varies by region, but

can easily reach six figures with experience and reputation for effectively managing larger, multi-

million dollar projects.

What Does a Construction Site Manager Do?

A construction site manager, sometimes called a construction supervisor, may be associated with

the general contractor or may work independently to supervise a construction site. In addition to

making sure all safety procedures are followed, this individual is also responsible for making sure



the process stays on budget and on schedule. If the project overruns in either, or both of these areas,

it is up to construction site manager to justify these issues to the owner of the project.

In most cases, the construction site manager will meet regularly with the owner or commissioner of

the project. This will allow the interested parties to remain fully informed of any potential issues,

and then make the necessary decisions with the new information. There can be valid reasons for

cost overruns, or construction delays. These will need to be thoroughly explained. This is a must in

any form of construction management.

The construction site manager is responsible for coordinating the work schedules and deliveries,

and making sure the building site is run efficiently. For example, loaders may work during the early

morning or evening hours, while laborers work during the day. This stops the construction site

from becoming overcrowded by too many people in the construction zone, which may lead to

inefficiencies, or safety issues. Further, it ensures materials are in place when the construction

workers are ready to begin.

The construction site manager will also work closely with any subcontractors to schedule them at

appropriate times. In some cases, having plumbing and electrical subcontractors in the same area at

the same time could be inconvenient as they may get in each other's way. It is up to the construction

site manager to anticipate these potential conflicts, and deal with them ahead of time. This will help

keep the project on schedule and within budget.

If a major change in the project is required, the construction site manager will usually be the one

who draws up a change order, or directs the order to be drawn. Once that takes place, the manager

will then take that order to the decision-making body, be it an executive officer or board of

directors, explain the situation, and make a recommendation. The recommendation usually

constitutes the majority of the change order.

Jobs for construction managers are heavily dependent on the economy. The fewer projects there

are, the less need there is for such managers. However, for those who are capable managers, there

are always jobs available. The qualifications include having a degree in construction science or

engineering, as well as some form of management experience. However, many managers also start

simply as laborers and work their way up through the ranks, learning the business along the way,

and may have no college degree at all.

What Does a General Contractor Do?

A general contractor is a person or company that is in charge of the entirety of a construction

project, whether commercial or residential. The general contracting company is responsible for



bidding on a job, obtaining a job, providing all of the materials, labor and equipment needed to

complete the job, and overseeing its accomplishment. While general contractor duties may include

some or all of the work associated with a construction project, especially carpentry, more

specialized work, such as plumbing, electrical and mechanical, may be subcontracted out.

To become a general contractor, known as a main contractor in Europe and a prime contractor by

the U.S. government, no degree is technically necessary, though a bachelor’s degree in construction

science is preferred by many larger companies. All states in the U.S. require that a general

contractor pass a written exam on general construction practices and laws before obtaining a

license to work. Some states also require that a contractor establish the financial means to run a

general contracting business, as well as provide recommendations from previous employers, clients,

and business associates before obtaining a license.

The job of a general contractor begins with seeking out work and submitting construction bids to

get hired to manage a project. Contractors will typically estimate the cost of materials for the

project, add in their projected cost of labor including payment for subcontractors, and their profit

margin, before submitting the estimate to the client. Once the client accepts the bid, the contractor

will most likely obtain a performance bond, especially for larger projects, ensuring the client has

financial protection in place in the event the project is not completed in the time or manner

requested.

Once the paperwork is finished and the contract is signed, the general contractor will then solicit

bids for the specialty work needed for the project that the contractor's company is unable or

unwilling to handle. In some cases, particularly when doing work for the government, the general

contractor will have to submit a list of subcontractors to the client either before the contract is

signed or directly after; subcontractors are sometimes subject to the approval of the client.

From that point, the general contractor oversees all aspects of the project and is directly

responsible for any complications that may arise during construction. Any delays or issues with the

project may come out of the contractor's pocket unless the agreement with the subcontractor or

subcontractors state otherwise. While some general contractors handle the majority of the work

themselves, those who engage subcontractors are still ultimately responsible for the timeliness and

quality of all work.

What is a Subcontractor?

A subcontractor is a person or a company hired by a general contractor to perform part of the work

of a construction job. For example, a contractor might be building a house, but might hire a firm or a



person specializing in electrical engineering to install the electrical systems needed in the house.

Generally the subcontractor will either relieve the main contractor of part of the building work, or

will be able to perform work at lower expense or at a greater skill level than the general contractor

could.

Often, a subcontractor, whether an individual or a business, forms relationships with several

general contractors. The general contractor working with a subcontractor does not employ the

subcontractor as a regular employee in most cases. Instead the subcontractor is either an

independent contractor, or is a company that provides its employees with required benefits like

health insurance coverage.

Not having to extend benefits to a subcontractor is one way that the general contractor saves

money on a job. However, if problems occur because of faulty work on the part of the subcontractor,

usually the general contractor is held liable for such problems. The general contractor may attempt

to seek redress with the subcontractor, or have defined terms in the contract with a subcontractor

stipulating that the liability would be more evenly shared.

Frequently, though, hiring a subcontractor, or several, is a way to avoid problems in construction.

Specialized workers like plumbers, electricians, or people who install heating and cooling devices,

often called HVAC workers, tend to have more knowledge and training in their given field. While

simply building something requires training and knowledge, people who are specialists better

perform certain types of work.

The subcontractor and the general contractor are served well by being able to form good working

relationships with each other. For the general contractor, access to a reliable subcontractor can

mean finishing jobs on time and on budget. For the subcontractor, a good reputation among

contractors means greater opportunities for consistent work.

A subcontractor often holds licenses in his or her specialty field. He or she might hold a general

license to conduct work in a state, and also hold advanced licensing. Such licensing implies a certain

amount of hours practicing his or her trade and knowledge regarding state building codes.

In some cases, one may also refer to a person hired for a few days of work, without a specialized

field as a subcontractor. Really the more accurate term is independent contractor. The person is

usually a temporary employee of the contractor, hired to finish work on time, or to temporarily

replace another worker who is ill. This type of subcontractor may not have a general contractor’s

license but may be hired for his or her carpentry skills.

what is construction management

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