Construction Processes - Overview
Construction Project Management
Construction Project Management is responsible for all construction-related matters during the proposal and execution phases. The objectives are to define the construction execution plan and coordinate all construction management in-house activities, mainly:
- Construction Subcontracting
- Construction Engineering
- Materials Management
- Completion Management
As part of the project management team the Construction Project Manager coordinates the construction interfaces with engineering and procurement.
During the construction execution phase the Construction Project Manager is the main contact for the site in all construction-relevant matters and he supports the site within his field of activities, incl. the coordination of site personnel, which includes the vendor specialists. He also forecasts the construction cost-to-complete in close cooperation with the Site Management.
The Site Management consist mainly of the roles of Site Manager, Site Construction Manager(s) and Site Area Manager(s), depending on size and complexity of the site.
Site Management is responsible for fulfilling the entrepreneurial obligations regarding human resources, materials, machinery, safety and environmental protection as well as for implementing technical and organizational measures in accordance with statutory, contractual and local requirements. Therefore, the Site Management is supported by specialized site personnel from other Processes.
The responsibility ranges from managing the site organization and supervising the site team (incl. subcontractors) up to reporting to the Project Management and in-house organization regarding adherence to budget, schedule, safety and quality goals.
Externally, the Site Management acts as on-site contact towards the customer in all matters concerning the construction works.
The objective of Site Supervision is to ensure that all construction work is carried out in accordance with the contractual specifications and engineering documents in respect of technical and quality issues.
The scope includes, but is not limited to the following activities:
- Execute the work planning / preparation and initiate the construction works
- Check and coordinate construction resources, e.g. subcontractor capacities (equipment and personnel), engineering documents and supplies
- Ensure that the quality of the construction work complies with the contractual specifications
- Manage and monitor the time schedule
- Monitor the construction and pre-commissioning work performed by the subcontractors
Construction Estimation & Tendering
Construction Estimation & Tendering defines the scope of construction work and provides a cost estimate of the same by means of in-house cost estimation as well as inquiries to subcontractors.
The main task is to coordinate the proposal work, including definition of inputs required from all Construction Processes, e.g. the construction concept or the subcontracting philosophy.
The team is involved in the subcontractor inquiry process and is responsible for analyzing, evaluating and clarifying the construction proposals received.As a basis for these activities the Construction Estimation & Tendering team develops and describes the construction execution concept and prepares the bill of quantities (BoQ). A complete estimate considers costs for subcontractor works, site management & supervision for construction and commissioning, temporary site facilities and CM in-house support.
Construction Subcontract Management
Construction Subcontract Management manages the subcontracts for the construction works from contract award up to final close-out. In smaller projects or other projects with a simple subcontracting concept (e.g. single subcontracting) the function of Construction Subcontract Management might be assumed by other key Processes, e.g. Site Management.
Most of the process activities take place during the site execution phase. During this phase Site Subcontract Management is responsible for:
- Advising the site management team with regard to subcontract conditions
- Tracking conformance with contractual provisions
- Verifying invoices & checking commercial correctness
- Processing and negotiating subcontract amendments, change orders, supplementary orders and other contract deviations- identifying and assessing construction risks associated with subcontracts
- Managing the site quantity survey team for the various disciplines
The in-house scope of Construction Engineering focuses on the following three objectives:
- Provision of input to the engineering team in respect of constructability on site, e.g. through the execution of constructability studies.
- Support the development of the construction time schedule to ensure a construction-driven approach to project management.
- Preparation of various aspects of site execution, e.g. planning of temporary site facilities, prepare lifting studies, modularization concepts, etc..
Construction Completion Management
The state of "completion" has been achieved on the date on which the plant or a unit thereof has been built and erected in accordance with the contractual documents agreed upon.
The Construction Completion Management provides a significant control function towards achieving the project schedule. Based on data provided by engineering all construction items (e.g. equipment, isometrics and instruments) are divided into subsystems and construction units in a database according to the pre-commissioning needs. Additional information from the project time schedule is also fed into the database. These data are supplemented with field inspection completion dates. The project-specific set up can be defined in a Completion Manual during the project start phase. Completion can be determined for plant units or for the complete plant. A certificate of Completion shall be issued when the work has been completed to such a degree that the remaining work will not hinder pre-commissioning.
Construction Materials Management
The main objective of the Construction Materials Management is to ensure the availability of materials and equipment at the right time and place.
The scope mainly concentrates on warehouse activities like the unloading, receipt and registration of materials and equipment, their storage in the warehouse and their issue to the site. Daily business also includes inspecting deliveries for damage, identifying missing items or non-conformities and initiating corrective measures. In addition, the Construction Materials Management supports the site team with respect to planning the work and pre-fabrication on the basis of the available materials and equipment. Regular inventories are supporting this.
Construction Quality Assurance & Control
The objective of Construction Quality Assurance & Control (in-house and on site) is to maintain the required level of quality for all phases of plant construction as defined in the Quality Management System and in individual QA/QC procedures.
The QA/QC process commences very early in the project phase by reviewing the tender/contract with the regard to QA/QC matters. The required QA/QC standards, instructions and specifications are analyzed and updated to suit the project-specific needs. During construction execution, the necessary QA/QC-documents, incl. inspection & test plans, are implemented and enforced. The QA/QC team on site assists the Site Supervisors in controlling the QA/QC tasks, inspections and tests on site.
Site Administration comprises the hiring and management of the local site personnel, responsibility for the site petty cash fund and local bank accounts, execution of payments and their accounting and the compilation of assignment data, e.g. time sheets on site. Furthermore the Site Administrator supports the Site Manager in preparing regular commercial reports. They also ensure compliance with statutory requirements (e.g. insurance and applicable local labor laws) and holding contact with local authorities (handling of visas, medical care issues and customs formalities). Another duty of Site Administration is the coordination of accommodation and local transport of the site personnel as well as the local procurement of so-called “non-plant materials”, e.g. site office materials, furniture, telephone, etc.
Construction HSE Management
It is of highest importance to ensure all HSE related laws, guidelines, instructions and procedures are observed.
Introduce and implement all site safety regulations in co-operation with the customer’s occupational safety requirements.
The tasks are e.g.:
- Providing the safety training matrix for employees and the subcontractors’ management personnel
- Coordinating of the implementation of a HSE e-learning module
- Track the observance of the completion of safety instructions on construction sites
- Checking and documenting all project-specific HSE requirements
- Preparing and updating the initial assessment of hazards
- Coordinating on-site occupational health and safety
- Ensuring HSE inspections and audits are executed
- Participation in investigations and recording of on-site accidents
- Support the Site Management to perform and implement HSE at Site