708
Figure 2. Work packaging, information management and work preparation in a flow chart
12
.
The workface is that geographic point on site where people implement materials into a
building facility or plant, i.e. where the actual construction works are carried out. Work preparation is the process of identifying what the work force on site needs and what must be done to
get the right material and right equipment in the right quantity and the right point of time to
them. The works on site can be initiated by the appointment of a work preparation specialist
at the start of detailed engineering design. Figure 2 describes the whole process in a flow chart.
4 PROCUREMENT AND SUBCONTRACTOR INVOLVEMENT
Procurement is an essential key process of strategic importance for a typical construction
manager as around 80–85% of the annual turnover is directly procured in form of individual
subcontracts or materials. Procurement needs constant attention to maintain company’s profitability, bearing in mind that a construction company is a commodity business with comparably low profit margins. As an example, for a typical construction manager, HOCHTIEF
Polska manages around 20 large projects with an average project size of approx. EUR 30 m,
each project having an average of approx. 220 suppliers/subcontractors with about 465 concluded subcontracts/amendments.
The procurement process in construction is decentralized and complex. Buildings are constructed in remote places as a design construct service where individual work pieces (packages) are constructed or assembled. In turn, the general contractor sells individually priced
commodities which are either manufactured on site or in fabrics. First pricing of the bid and
later manufacturing or procuring the individual parts or services of a building is a complex,
however standardized process.
Every savings made in procurement leads to a direct reduction of expenditure of the business
and increases the profits. This directly impacts the quality of the purchasing process and the
company’s profits. As a result, consistent purchasing processes conducted in the extended interaction and networked with partnering units can guarantee the company’s continued success.
If packages are carried out as own work the procurement team must identify all the
materials and labor required for a specific Construction Work Package (CWP) as a unique
package of works for themselves. This allows to manage fabrication and material purchases
and to be on site at the required point of time. In parallel the engineering team establishes
the Engineering Work Package with information like material matrix
13 and fabrication
12. After G. Ryan, p. 16.
13. Material matrix: As an extract from the Engineering Work Package (EWP) the material matrix
shows a list of all materials required to construct the CWP, the organization responsible to procure the
components, the Fabricator/Supplier and Required on Site (RAS) date (CWP Start Date).
Project
Management
Team
'") Could be supported by a specia l software
Figure 2. Work packaging, information management and work preparation in a flow chart
12
.
The workface is that geographic point on site where people implement materials into a
building facility or plant, i.e. where the actual construction works are carried out. Work preparation is the process of identifying what the work force on site needs and what must be done to
get the right material and right equipment in the right quantity and the right point of time to
them. The works on site can be initiated by the appointment of a work preparation specialist
at the start of detailed engineering design. Figure 2 describes the whole process in a flow chart.
4 PROCUREMENT AND SUBCONTRACTOR INVOLVEMENT
Procurement is an essential key process of strategic importance for a typical construction
manager as around 80–85% of the annual turnover is directly procured in form of individual
subcontracts or materials. Procurement needs constant attention to maintain company’s profitability, bearing in mind that a construction company is a commodity business with comparably low profit margins. As an example, for a typical construction manager, HOCHTIEF
Polska manages around 20 large projects with an average project size of approx. EUR 30 m,
each project having an average of approx. 220 suppliers/subcontractors with about 465 concluded subcontracts/amendments.
The procurement process in construction is decentralized and complex. Buildings are constructed in remote places as a design construct service where individual work pieces (packages) are constructed or assembled. In turn, the general contractor sells individually priced
commodities which are either manufactured on site or in fabrics. First pricing of the bid and
later manufacturing or procuring the individual parts or services of a building is a complex,
however standardized process.
Every savings made in procurement leads to a direct reduction of expenditure of the business
and increases the profits. This directly impacts the quality of the purchasing process and the
company’s profits. As a result, consistent purchasing processes conducted in the extended interaction and networked with partnering units can guarantee the company’s continued success.
If packages are carried out as own work the procurement team must identify all the
materials and labor required for a specific Construction Work Package (CWP) as a unique
package of works for themselves. This allows to manage fabrication and material purchases
and to be on site at the required point of time. In parallel the engineering team establishes
the Engineering Work Package with information like material matrix
13 and fabrication
12. After G. Ryan, p. 16.
13. Material matrix: As an extract from the Engineering Work Package (EWP) the material matrix
shows a list of all materials required to construct the CWP, the organization responsible to procure the
components, the Fabricator/Supplier and Required on Site (RAS) date (CWP Start Date).
Project
Management
Team
'") Could be supported by a specia l software