ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY

DEPARTMENT OF CIVIL ENGINEERING

Course Title: Construction Planning and Management

Course No : CEN 5316/4207
Credit: 3
Lecture : 2 hrs/wk

Tut: 3 hrs/wk
Instructors: Kokebe Y. and Surafel L.
Management Development
 Definitions of Management
• is the act of getting people together to accomplish desired
goals and objectives using available resources efficiently and
effectively.

• is the process of reaching organizational goals by working with

and through people and other organizational resources.

• involves a creation of an environment in which people can use

resources to reach stated goals.

• refers to the tasks and activities involved in directing an

organization or one of its units: planning, organizing, staffing,
leading, and controlling.
 Count…
is the process of designing and maintaining an environment in
which individuals, working together in groups, accomplish
efficiently selected aims.

is the art of arranging various activities and group of people in

an organization to achieve a common goal.

comprises the interlocking functions of formulating corporate

policy and organizing, planning, controlling, and directing the
firm's resources to achieve the policy's objectives.
 Count…
Management is a social science. It uses both art and science.
The Art of Management
Decisions are made and problems solved using a blend of
intuition, experience, instinct, and personal insights
Requires interpersonal, relationship, communication skills to
accomplish the tasks associated with managerial activities

The Science of Management

• Assumes that problems can be approached using rational,
logical, objective, and systematic ways
• Requires technical, conceptual, diagnostic, and decision-
making skills and techniques to solve problems
• Uses scientific tools such as quantitative methods, statistics
and operations research
 Construction Management
defined as the management in which group of people works
together, to execute the project economically without
affecting the quality in a well planned and organized manner.

is the practice of managing construction in place of the owner

while also serving as the construction consultant to its design
and other aspects within the project.

construction managers direct, coordinate and brainstorm a

wide variety of the construction projects, even the selection
and hiring of contractors and finances.
 Project Management
is an art (use behavioral & judgmental skills – cannot
quantified)) and science (uses logics & analyses and uses
computers and quantitative formulas) of mobilizing &
managing people, materials, equipments and money to
complete the assigned project work on time within budgeted
costs & specified technical performance standards.

aims at achieving the specified objectives efficiently and

effectively by managing human energies and non-human
recourses placed at their disposal.
 Count..
In general, the management :
 towards coordinating different workmen,
 availing the required machinery & materials at the right
time,
 executing the project economically & successfully, and
 controlling over the quality, time & sequence of flow of
construction in a well planned & organized manner
 Count…
Mostly in construction industry:

 resources are scarce,

 hard to obtain easily and
 becoming expensive every day
…in spite of the fact that their demand is high.

It is this reality which obliged us to utilize them efficiently and

effectively.

…….that is the basic reason why construction industry needs to

be managed.
 Needs of Construction Management
FOR-
The proper planning and organization of the works,
The effective use of resources,
The completion of works within estimated budget and specified
time,
The timely delivery and utilization of materials,
The necessary quality of the work,
The proper usage of equipment and latest methods of
construction and technology,
The building up of reputation for high quality of workmanship,
The controlling over the contract agreed upon and specification,
The proper communication and reporting of the works executed,
The provisions of safe and satisfactory working conditions for all
workers,
 Count…
The motivation of people to work to their best and creating an
organization that works as a team,
The taking of sound decisions at the lowest practical
management level through delegation of authorities,
The proper sequence of flow of construction, and
The proper coordination of the resources to create an
organization that works as wholesome to fulfill the objectives.
 Effectiveness & Efficiency
Effectiveness is:
The degree to which goals are achieved
Achieving the end result/the thing itself
Doing the right things

Efficiency is:
Using minimal resources to produce the desired volume of
output
Using resources wisely and in a cost-effective way
Operating in such a way that resources are not wasted
Doing things right
 Efficient
Low High
High Effectiveness with low High Efficiency high effectiveness
efficiency Achieves the right objective,
Achieves the right objective, goal, with good use of
E High goal, with poor use of resource resource
f Result: Result:
– Product that customers want – Product that customers want
f – Product that customers cannot – Product that customers can
e afford afford
Low Efficiency Low effectiveness High Efficiency Low effectiveness
c Achieves the wrong objective, Achieves the wrong objective,
t goal, With poor use of goal, with minimum use of
Low resource resource
I Result: Result:
v –Product that customers do
not want and cannot afford
–Product that customers do not
want but can afford
e
 Efficiency: Operate in
such a way that
resources are not
wasted

Organizational
Success

Effectiveness: Doing
the right thing ,
achieving goals
Functions of Management
 Functions of Management
Management functions are what managers do- processes and
actions and activities that they use to integrate resource in order
to achieve organizational objectives.

The aim of construction management is to create an

environment which will facilitate the execution of work &
accomplishment of objectives in a planned and efficient manner
as per design and specifications within the prescribed time limit
and possible greatest economy.

To achieve these aims the management must have the following

major functions.
 planning, organizing, procuring &/or staffing, leading/directing,
and controlling.
 Planning
involves selecting/setting missions, visions and objectives and
the actions to achieve them.

requires decision making i.e., choosing future courses of

action from among alternatives.

Decides what to do, when to do and how to do a job.

Planner, decides how the project will be carried out, what

material should be used, what staff will be employed, what
equipment and machines will be utilized to do the work etc,
to achieve the goals effectively.
 Count…
Generally, It involves,
Crystallizing objectives
Collecting & synthesizing information.
Deciding in advance what is to be done, how is to be done, in
what order it is to be done. (Material to be used, staff to be
employed, equipments & machinery utilized)
Developing alternative course of actions within specified
constraints.
Comparing alternatives.
Setting and scheduling the optimum course of action.
Establishing policies, procedures, methods, schedules,
programs, systems, standards and budget.
 Organizing
is the function of management which create an organizational
setup and allocation of jobs.

is that part of managing that involves establishing an

intentional structure of roles for people to fill in an
organization.

is intentional in the sense of making sure that all the tasks

necessary to accomplish goals are assigned to people. (who
can do them best)
 Count…
It involves:
Dividing the work into component activities.
Designing job structures
Defining performance targets and responsibly
Allocating Resources
Delegating authority
Establishing structural relationship to secure coordination
 Procuring/Staffing
Staffing involves filling, and keeping filled, the positions in the
organization structure
Procurement involves managing providing the right quality
resources at the right time.
It also involves
 Preparing resource procurement schedule
 Developing specification for the required resources
 Deciding appropriate sources of procurement
 Budgeting resources & arranging approvals and purchases
 Preventing wastage during resource handling at site.
 Supplying on time required quality and quantity or resources
to project construction sites.
 Directing/Leading
Leading involves guiding, supervising, motivating and leading
the employees of the organization.
involves influencing people so as to enable them to
contribute to organization and group goals effectively and
efficiently; it has to do predominantly with the interpersonal
aspect of managing.
involves:
 Providing effective leadership
 Motivating participants behavior
 Communicating instruction and orders effectively
 Providing suitable climate for subordinate’s development.
 Controlling
controls the actual progress achieved in comparison with the
planned programme at regular intervals and also identify the
areas of deficiency and applying corrective measures.
Controlling involves:
 Setting of standard against which work progress is measured.
 Comparing the actual performance against the standard
(planned)
 Identifying the causes of deviations between the actual and
planned performance
 Evolving systems for generating performance data
 Monitoring the data received and formulating corrective options
 Re-planning if necessary
 Others…
Coordinating: harmonizes the action and approach of various
employees or group of employees to achieve a common goal.
This is a process which operates smoothly with the flow of
information, decision and results in every direction of the
frame work of an organization.

Communicating: for execution of a project, a proper and

effective communication of instructions, orders or any change
in the plans or designs, is most essential in every direction
within the organization.
 Count…

Generally, these above managerial functions are inseparable

and often performed continuously as an interactive process.

The managers at every level carryout all the managerial

functions but, their extent to manage and the time spent to
perform these functions would vary.
Management Scopes and Levels
 Management Scopes and Levels
Levels are hierarchical arrangement of managerial positions in
an organization.

The extent to which the managers perform the functions of

management – planning, organizing, procuring, directing and
controlling – varies by level in the management hierarchy.

Managers could be classified either functional or general

managers depending on the nature and scope of the job
managers are performing.
 Count…
In organizations, there are generally three different levels of
managers:
1. First-level/first line/operating level/supervisory level
managers: Responsible for day-to-day operations. Supervise
people performing activities required to make the good or
service.
2. Middle-level managers: Supervise first-line managers. Are
responsible to find the best way to use departmental
resources to achieve goals.
3. Top-level managers: Responsible for the performance of all
departments and have cross-departmental responsibility.
Establish organizational goals and monitor middle managers.
Hierarchy of Management (Levels)
 First-line/operating/first level managers

The major functions of operating level management are:

 Planning daily and weekly activities and accomplishment

based on the monthly, quarterly and yearly plans.
 Assigning operating employees to specific tasks.
 Issuing instructions at the work place, following up,
motivating and evaluating workers and reporting to their
supervisors.
 Middle-level managers
 Acting as intermediary between top management and
operating level management.
 Translating long-term plans to top into medium range plans.
 Developing specific targets in their areas of responsibilities
 Achieving objectives set by top level management.
 Designing and implementing effective group and intergroup
work and information systems.
 Defining and monitoring group-level performance indicators.
 Diagnosing and resolving problems within and among work
groups.
 Designing and implementing reward systems that support
cooperative behavior.
 Top-level managers

mainly responsible for controlling and overseeing all the

departments or major part in the organization.

develop and define goals, strategic plans, and policies for the
company, as well as make many decisions on the direction of
the business.

play a significant role in the mobilization of outside resources

and are for the most part responsible for the shareholders
and general public.
NB: All Effective Managers Carryout Essential Functions
Time spent in carrying out managerial functions
Managerial Roles and Skills
 Managerial Roles and Skills

Managerial Roles:
Role: is an organized set of behaviors.

There are 10 roles identified that project managers undertake

to accomplish management functions. These ten roles,
generally, classified into three major categories; (advocated by
Henry Mintzberg).
 Interpersonal role
 Informational role
 Decisional role
 Interpersonal Roles
These roles are related to formal authority base of managers.
1. Figurehead
 The project managers, is the legal & social head of the project.
 He is the single focal point for making decisions, ceremonial
functions and symbolic duties.
2. Leadership
 Direct the inter-functional efforts and ensuring achievement of
goals.
 Influence, initiate & motivate the subordinates so that subordinate
achieves organizational goals.
3. Liaison
 Roles related to communication with internal and external
stakeholders to develop favorable relationships and networks.
 Dealt with those activities which may involve correspondence.
 Like contact with concerned government officials contract vendors,
professionals & top persons of construction industry.
 Informational Roles
These roles are related to availing sufficient information to
carryout jobs effectively.
Because they are information centers for information and
communication source. (Handling, Sharing & Analyzing
information).
1. Monitor
 Roles related to scanning internal and external environments
of their organizations for selecting useful information.
 Read and talk to others to receive information.
 Involves seeking out, receiving & screening information.
 Focuses a planned approach for performing tasks and
implements time, cost & quality planning & monitoring
system for the project.
 Count…
2. Disseminator
 Roles related to sharing and distributing relevant information
(From internal or external) to employees or other concerned
people (in work place).
 Information may be formal or informal, written or verbal.
3. Spokesperson
 Roles related to information communications to external
stakeholders.
 Managers play spokesperson role when they provide
information to people to outside the organization.
 He acts as the sole representative through whole all
communications with the client.
 Decision Roles

These roles are related to processing information to reach

conclusions.
1. Entrepreneur
 Roles related to initiating new developments.
 Seeks and identify opportunities, improvements and needed
change.
2. Disturbance Handler
 Roles related to conflict resolution and problem solving.
 Maintain organizational harmony by resolving conflicts and
diagnosing organizational behavior on time.
 Applies corrective actions when the organization faces
important unexpected disturbances.
 Count…
3. Resources Allocator
 Roles related to distribution, assignment and alerting of different
resources to projects.
 The manager oversees allocation of all resources. This involves
scheduling on time, programming work, authorizing actions.
 Calls for developing & monitoring budgets and predicting future
resource needed.

4. Negotiator
 Roles related to win comparative & competitive advantages to achieve
goals.
 Reaching agreements between other managers, unions, customers, or
shareholders.
 Role in which managers work with suppliers, distributer and labour
unions to reach on agreements about the quality and price of inputs,
 Count…

General Role Specific Roles Example

Interpersonal 1. Figure head • Attending award banquet

2. Liaison • Coordinating production manager with
supply manager
3. Leadership • Setting direction appraise performance

Informational 1. Monitor • Contact government regulatory agencies

2. Disseminator • Conduct meeting and pass policy changes
3. Spokes Peron • Conduct press release on the new product
developed
Decisional 1. Entrepreneur • Change the work process
2. Disturbance • Decide which unit must move to new
Handler facilities
3. Resource • Decide who should receive the new
allocator computer
4. Negotiator • Settling grievance
 Managerial Skills
1. Technical skill (deals with things): The specific knowledge
and techniques required to perform an organizational role.
 It is knowledge of and proficiency in activities involving
methods, processes, and procedures.
 Supervisors need technical skills to manage their area of
specialty.
 Thus it involves working with tools and specific techniques.
2. Human skill (deals with people): is the ability to understand,
alter, lead, and control the behavior or other individuals.

 it focuses on working with people;

 it is cooperative effort;
 it is teamwork;
 it is the creation of an environment in which people feel
secure and free to express their opinions.
3. Conceptual skill (deals with ideas): is the ability to see the "big
picture," to recognize significant elements in a situation, the
ability (or mental capacity) to conceive and manipulate ideas
& abstract relationships among the elements.

4. Design skill is the ability to solve problems in ways that will

benefit the enterprise.
Construction Industry
 Construction Industry
 construction industry is an industry which is involved in the
planning, execution and evaluation (monitoring) of all types of
civil works.

 All civil works such as buildings, roads, water works, hydro-

power works, etc., can be grouped under the industry termed
as construction industry.
 Construction Industry

Largest industry in the world.

More of a service than a manufacturing industry.
Growth in this industry in fact is an indicator of the economic
conditions of a country.
Because the construction industry consumes a wide
employment circle of labor.
 Cont…
 The Construction Industry can be categorized into three major
sectors; namely,

a) Transport and Communication (Road, Railway, Airway, and

Telecommunication related physical works);

b) Water and Energy Works ; and

c) Buildings and Other Physical Infrastructures.

 Cont…

Transportation Energy
Infrastructure The Construction supply
Industry

Urban Development Water

supply
T able 2.1 : C onstru ction In dustry -Sectoral Lin kages

Sectors Building Other Civil Works

A griculture Offices, Storages, Equipment Irrigation Schemes, Rural

Sh ades A ccess R oads
Education Offices, Stores Class rooms, Internal and External Roads
Libraries, Laboratories, etc and Installations
Energy Offices, Storages, Garages H ydro P ow er Schem es,
Electricity & Power Stations
and lines
Industry& Factories, Offices, Workshops, Internal and External
C om m erce Storages Installations
H ealth Offices, Clinics, Health Centers, Internal and External
Hospitals Roads& Installations
Transportation & Offices Storages, Stations Airports, Roads, Rail Ways,
com m unication Telecommunication lines

Water Resources Offices Storages W ater supply & sew erage

distribution lines, Treatment
plants
D efense Offices, camps, Training centers D efense Schem es
 Cont…
 Construction Industry is unique from the other industries due
to the following facts:

i. Fragmented Industry

ii. Unpredictable Work Load

iii. Long Production Cycle

iv. Subject to Environmental Impact

v. Transient Organization Nature

 Cont…
 Construction is an enormously important industry by which
societies create most new values;

 Creates, defines and maintains the built environment within

which most other social and economic activities take place;

 Most of mankind’s day-to-day activities are dependent on the

infrastructure delivered by the CI
 The History of Construction

• Since ancient times, mankind has erected some huge

structures

The 6, 550, 000 t and137 The 24m and 180t Axum

m Pyramids of Khufu at The 6,400Km long China Obelisk (Before the 4th century)
Giza (Circa 2500BC) Wall (Around 668 BC)
 Characteristics of CI

Demand for the product

 Demand is usually driven by ‘other’ goods and services; not

controlled by industry,

 In the majority of cases, clients define requirements before

the industry provides it,

 Time lags between demand and supply is long.

 Stakeholders In CI
 Are individuals or groups who has a vested interest in the
project or its product.

 Are parties who could have a telling effect on the success or

failure of the project
 Stakeholders In CI
Indirect stakeholders’ boundary

Users
(Beneficiaries)

Contractors
Regulatory/Statutory
bodies Suppliers
Client
W o r k e r s
Direct stakeholders’ boundary
Trade Unions Financers/
Financing
Consultants institutions

The general public

 Major Stakeholders In CI
 Client: is the party (public or private) under whose tutelage
the project is executed

 Comes up with the investment needs

 [Usually] provides the infrastructure needed

 Takes care of some of the legal constraints & permits

 Pays for the project’s execution

 Major Stakeholders In CI
Major public clients in Ethiopia;

Roads (ERA & its regional counterparts)

Housing (MoE, MoH, etc)

Energy (EEPCo)

Water sector (MoWR)

 Major Stakeholders In CI
Consultants: are professional bodies who design the project

 Change the clients project idea into economic and

constructible artifact

 Make sure that design satisfies requirements

 [Usually] prepare BoQ and contract documents

 If assigned to supervise:

Look after proper execution of project

Certify payment certificates

Issue provisional and final acceptance certificate

 Major Stakeholders In CI
Contactors:

 is the party that changes the drawings and specification made

by the A/E into a physical structure

 Provides the resources needed to execute the project

 Executes the project according to plan

 Monitors project execution

 Rectifies defects
 Major Stakeholders In CI
Statutory bodies:

 are government bodies that looks after the project’s compliance with the
general public’s interest

 Prepare a general development scheme and make sure that the project
satisfies that

 Look after the safety, legal, commercial etc issues associated with the
project

 Look into the environmental, cultural, social etc effect that the project
induces

 The major regulatory bodies in the sector are

Municipalities, The ERA, The MoWUD

 Major Stakeholders In CI
• Suppliers: are parties that supply the varies materials, equipment and
services needed for the project

• Financers/Financial institutions: are institutions like banks,

insurances, pension agencies etc who could provide loan services for
the project

• Workers in the industry: are professionals, occupational or unskilled

laborers who earn their living from working in the industry or its
supply chain.

• Trade (labor) unions: are unions of the working class that look after
unfair treatment of workers (like payment issues, firing issues) as well
as issues related to occupational health and safety
 Major Stakeholders In CI
• Project product users: are parties who may be using the end
product of the project

• The general public: are communities of the locality, the general

society of a country or even the globe who may have a vested
interest in the project

• Other sectors: are sectors which could have interest in the

process or product on the construction project
 Major stakeholders in CI
 Project product users: are parties who may be using the
end product of the project
 The general public: are communities of the locality, the
general society of a country or even the globe who may
have a vested interest in the project
 Other sectors: are sectors which could have interest in the
process or product on the construction project
 Importance of construction

• Construction constitutes about 10% GDP of many economics;

about 30% of developing countries
• 111 million employment worldwide
• Defines, develops and maintains that built environment
where other activities take place
• Provides the second largest work opportunity (next to
Agriculture)
 Major works in construction

Construction

Buildings and related

Infrastructure works
works

Water Resource
Civil work in
Transportation Energy & Mining Development
Communication
works
 Major works in construction: Ethiopia
Sector Major outputs
Road sector Upgrading, maintaining (of existing)
and construction of new roads.

Power sector The electrification program based on

generation and transmission of power,
Built huge hydropower projects to
move the nation from rationed power
supply to the verge of power exporter

Water works sector Many irrigation, sanitation &water

supply projects across the country
Housing/building sector Huge number of housing units and
institutional buildings being build
Private sector Vibrant private involvement with many
real estates and buildings (residence,
commercial, factories, etc)
 Major works in construction in Ethiopia

Sector Forecasts
Road sector 106106Km road upgrading, maintenance,
construction at estimated cost of Birr 43.16 Billion

Power sector Huge hydropower projects still under construction.

To name a few Tekeze (2.132 Billion), Gojeb
(1.524Billion)

Water works sector The still running irrigation schemes would cost the
nation more than 21 billion when complete

Housing/building sector To build about 400,000 housing units in the coming

five years

Private sector Can only be forecasted to grow even faster (the

nation has to move to the industrialized. If so, huge
construction expected
 Major challenges of the industry in
Ethiopia
• Considerable components of the industry’s activities are being are
implemented by international companies (contractors, suppliers,
consultants etc)
– Reason
• Local firms lack capital (equipment and machineries), financial, institutional
(managerial, experience reputation, etc), human (competency and
capability), etc resources to satisfy financers’ requirements

– Effect on the industry

• Lost opportunity to build capacity of local firms

• Lose in business and job opportunities for citizens

 Major challenges of the industry in
Ethiopia
• Most of the projects delivered have failed under the
conventional project success criteria of being delivered on
time, on budget and to the standard and quality required
• Reasons:

– Incapable industry (capacity and competency) as

seen from quite various aspects
– Various unprofessional (particularly in terms of
systems and managerial) and non ethical practices
 Resources for the Construction Industry
For most of the construction projects, the resources to
look into are the following;

1. Human Resources / Labor or Workmen

2. Financial Resources / Fund

3. Information Resources
4. Physical Resources such as Materials, Equipment and
Other Assets
5. Services and Management.
Thank You!!