Business environment: Construction Management and trendsIntroduction

            In existing business environment, construction and building industry has been emerged as one of the major and lucrative business industry. The urge of infrastructural development for economic growth is the basic reason behind the intensive potential of this industry. In this context, practices and trends related to management in this industry are slightly different from that of other industry as the amount of deployment of human and financial capital in construction projects are is quite high (McKeon 2012). Owing to this reason, the report provides some theoretical underpinning of management skills required within the construction and built environment.1. Management principles and their applications in construction sector

            There are a number different important theories and principles of management which are specifically used within construction and built environment.

1.1 Principles of management used within construction and built environment

The disposition of construction industry is quite vast, which allows the management of the business organization to apply different important theories and management related concepts in construction industry. In direction to this, first and important model applied on the construction industry is the scientific management theory. The scientific management theory of Taylor in the context of construction industry stats that for the completion of a construction project, there is a need of get rid of some traditional management aspects such as rule of thumb, intuition based decision making and guesswork. As per the approach effective and practical training provided to the person can refine the capabilities and skills of a human being. Moreover the theory also suggests that planning and organizing are two different aspects from the actual execution of the project (McKeon 2012). Moreover, administrative theory of management in the context of construction industry also suggests that being as an administrator; there is a need of accomplishing different administrative functions such as forecasting and planning, organizing, commanding, and coordinating (Radosavljevic and Bennett 2012).

1.2 Influence of HRM on the performance of individuals and teamsIn the context of performance of individual and teams employed within construction industry, the role of HRM becomes quite crucial. As the construction projects are long term projects in which, there is a need of some intensive amount of human resources, an effective human resource has become an utmost requirement. Under the influence of effective HRM, human resource can easily be procured, retained and motivated in the most effective manner. HRM acts a bridge between top level management and workers. In this way, HRM enables an effective communication during any construction project. This influence of HRM on communication leads to resolve different contingent problems at the construction site. This also enhances the engagement of management as well as workers with the construction project, which leads to better and efficient accomplishment of construction project (Naoum 2001).

2. Structures and activities in construction and built environment

            There are different activities and organizational structures in construction and built environment.

2.1 Nature of activities performed within the construction and built environment

            The nature of different services provided by construction industry is quite sustainable and long term. The customers have long disposition while availing any construction project. In addition to this, team work is also an important aspects of tasks performed with construction industry. In order to undertake the project, there is a need of having some effective project team. Each member of team is assigned with different tasks and activities. Performing assigned task and coordinating with other members of the team are included within general roles and responsibilities of team members. Along with this, there are specialist person also included within the team for the purpose of accomplish technical tasks assigned to the team (Walker 2007).2.2 Evaluation of the organizational structures and approaches

            In a construction industry, primarily there are three different organizational structures and approaches taken into account within construction industry.

2.2.1 Systematized Impersonal Mode

            In this type of organizational structure all the important decisions are taken by the central management system. The intensity of authority provided to the project teams is quite low and control of the top level management over project is quite high. However in this structure, the scope of independent decisions by project teams in a contingent team becomes quite limited (McKeon 2012).

2.2.2 Discretionary Personal Mode

            In this type of structure, there are different hierarchical levels within the organization. Flow of orders within the organization is from higher hierarchy to lower one. Each hierarchical level is provided with the authority of making operational activities. Strategic decisions are taken by top level management only (Singh 2001).

2.2.3 Development group Mode         

            In this structure, the role of top level management is restricted with the formation of some specific teams. These teams are capable enough for taking their independent decisions in direction to the successful completion of the project (Loosemore 2003).

2.3 Influence of size and scale of contract over business practices in the construction industry

The size and scale of the contract can affect the business practices and organization structure followed within the construction industry. For instance, in the case of small sized business organizations, Systematized Impersonal Mode is the best suitable option in terms of organizational structure as the management can easily control and monitor business activities in the contraction project at small level. However, in the case of large project, it becomes quite hard for management to monitor each and every activity of project. In this case, Discretionary Personal Mode and Development group Mode are the two prime organizational structures of the organizational (Singh 2001).

3. Management techniques used in the construction and built environment sector

            Along with this, in order to accomplish different activities related with the construction project, different management techniques generally are used within construction and built environment sector.

3.1 Planning and Management of Construction project

            There are four primary stages of planning and management of a construction project which can be presented as below:

3.1.1 Layout and accommodation:

            In the first stage a rough and brief layout for the entire project is prepared. Moreover an intensive review of different resources required to the project and available within the organization is also done in this stage.

3.1.2 Method statements

            Method statement phase demonstrates different objectives and blueprints of the planned projects. In this phase, the involvement of management personnel and technically skilled people such as engineers, and architects is quite important.

3.1.3 Execution of the project 

            In this phase, an effective deployment of the resources is undertaken for the purpose of executing the project.

3.1.4 Monitoring and control of project

            This is the last stage in which frequent monitoring of the progress of the project is undertaken so that better controlling can be undertaken (Valencem  2010)

3.2 Procurement scheduling and control

            As construction projects are quite lengthy and long term by nature, it is essential to have proper scheduling. In this regard, labor scheduling and Just in Time approach is one of the major and effective approaches for undertaking Procurement scheduling. In first approach, proper and effective scheduling of availability of labor is undertaken so that problems like shortage of labor can be mitigated. In addition to this Just in time approach prompts the organization to minimize the accumulation of resources. The resources are procured only when they are needed (Hardin 2011).

3.3 Quality control and risk management

            The quality control is one of the utmost tasks undertaken within the project. It is due to the reason that the level of risks associated with different construction projects is quite high as significant amount of money and resources are involved within such projects. In direction to this, frequent monitoring of the project is implied. For this purpose, the trend of employing team of experts for checking the quality of the project is quite common within the construction projects. In direction to this, the measure of quality of the project is measured on the basis of time, cost and efforts employed in the project (Naoum 2001).

4. Methods of procurement and contracting

            In the construction project procurement and contracting is one of the major and essential tasks.

4.1 Evaluation of procurement methods used in the construction

            There are different methods, such as contractor selections, and private partnerships, are frequently considered for the purpose of procuring resources in the construction. For the purpose of undertaking resources for small project, contractor selection method will be the most suitable method as it decreases the requirement of the interference of top level management. On the other hand for large size construction projects, there is a need of some private and public partnership within the project (McKeon 2012).4.2 Use of contracts to manage construction projects

            In order to manage different construction projects, there are different types of contracts are required to be taken into account. These contracts can be used for the purpose of undertaking different tasks related with construction. In addition to this, there are different parties such as suppliers, financer, investors, and buyers, which are considered as treated under different contracts (Atkin 2009). The prime feature of the construction related contracts is that such contracts are made for long during and signed one some specific terms and conditions regarding the completion of the project. In addition to this, as some intensive amount of risk is involved within such contracts, the level of considerations decided on the violation is also quite high. In direction to this, there are certain important and crucial legal implications are directly implied in the case of the violation of the term and conditions employed within the contract. The use of contracts in a construction project helps the management to avert risks in the project (El-Reedy 2012).

4.3 Impact of procurement techniques on the organization

            Different procurements techniques used by construction companies allows the management to have better and effective way to procure effective and better resources for effective completion of the project. In this direction there are different important techniques such as multi-disciplinary teams, contractor’s selection and public and private partnerships are quite useful from the perspective of the organization’s development (McKeon 2012). With the help of effective and most appropriate method of procurement, the organization can not only get government’s grants for the project, but it can also resolve different legislative issues related with project. In relation to this, the selection of procurement and project execution methods in the construction industry is quite important as there are a number of different sustainability and environmental management issues that can be arisen due to such crucial and intensive methods. Owing to this reason, it is quite essential for the management of the organization to make some effective and related methods of procurement in its construction related projects (Atkin 2009).Conclusion

            On the basis of the review of the entire paper, it can be concluded that disposition of constriction industry and related projects are quite different from that of the other business industries. Owing to this reason, some different management, procurement, evaluation and control methods are used within the industry. The report has reflected some of the important trends prevailing within the industry, which helps the organization to design their construction project in the most effective manner.

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