How Do We Execute Our Construction Projects?

The Construction Industry Institute estimates that there is up to 57% non-value added effort or outright waste in previous construction business models. That translates to over $600 Billion in waste and costly delays in the construction industry each year.

Whether you are tearing down a roof on a residential home or you are renovating a commercial site, these processes produce a lot of waste. With increased waste around the area, your construction site is more prone to accidents. Beyond the fact that accidents can cause accidents, they also expose your business to liability risks. When you reduce the amount of waste from your project, then you reduce the possibility of risks.

Construction projects use a significant amount of materials and supplies. When these materials are used in a socially and environmentally responsible way, it improves your personal relationship with the environment and reduces your impact on the earth.

Over the past few years, the construction industry has been changing dramatically. One of the most important stages in the construction management and business management is the planning phase. They share similar two main levels of planning which are the strategic and operational planning. However, business management planning to decide in advance what should be done, and how to do it, when you do and you are done. On the other hand, Construction management strategic planning is to deal with selection on a high level of overall objective of the project, including the scope, procurement methods, schedules and financing options but the planning of operations, including the

There however are challenges in the industry occasioned by uncertainty on future spending on construction projects by the government. Moreover, the cost of doing business and the ability to increasingly make revenue have created a challenging environment for the construction firms. Therefore stakeholders in the construction industry are concerned with whether the government would increase its spending and whether the public construction projects will be available in the future since less than 10 percent are currently financing their clients.

The construction industry is a major contributor to the world wide. The long term objectives of any

A substantial majority of projects in the United States construction industry fail to meet their cost and schedule objectives, in line with Construction Industry Institute (CII) research.

Keeping all this in mind, builders have to work alongside clients to satisfy their project needs. Projects are also being built quicker because of the demand to occupy them instantly.

More generally, Level Organisation (2013) noted that demolition and construction processes are the most significant producer of waste as opposed to other stages of buildings’ lives. Much CDW is seen to be preventable: “Most of this dumping of construction waste is unnecessary – it has been demonstrated that simply by sorting waste, at least half of it could be diverted from landfills” (Level Organisation, 2013).

The current state consists of fragmented processes, which is the source of all productivity issues and inefficiency in the construction industry. The future state should be “project focused” rather than “process focused”. To achieve this desired future state it is essential that these processes are transformed to a more integrated approach. There should be better collaboration between the different stakeholders in the industry such as architects, builders, owners and regulatory agencies that issues permits. In the current, traditional system of project delivery, the relationship between these involved parties are adversarial. This can lead to the project being marred with schedule delays, budget overruns, poor quality, and disputes and litigations between the parties involved, as they play the “blame game” refusing to take liability or responsibility for the different processes. The desired future state can be reached through incorporating the more collaborative delivery methods that are gaining popularity, like Design Build and Integrated Project Delivery. These systems are based on information and risk sharing. IPD especially has a potential to incorporate Lean Construction practices and Target Value Design in the process. The alliance of the owner, builder, design professional and other specialty consultants for the project, can communicate effectively with each other on a common platform of knowledge sharing. Problems that may arise during construction or design

The productivity decline in the construction industry in recent years is mainly due to the schedule and cost overruns, poor coordination between the project participants and ineffective planning. Integrated project delivery (IPD) solves these issues by integrating project participants, processes, practices, systems, business and work structures into a process that collaboratively harnesses the talents, ideas and insights of everyone involved in the project. This method

HOW TO BUILD A SMARTER PROCUREMENT IN THE CONSTRUCTION INDUSTRY CONTENTS 1 Introduction5 1.1 Meaning of Procurement 5 1.2 Procurement Supply Chain management 6 1.3 Procurement supply chain in construction industry 6 2 How is procurement important in the construction industry?........................................... 7 2.1 Size of industry 7 2.2 nature of construction industry 8 2.3 Importance of procurement systems 8 2.3.1 Converges cost reduction towards site activities 9 2.3.2 Share the risk throughout the supply chain 10 2.3.3 Information dissemination 11 2.3.4 Supplier relationship management 12 2.3.5 Product Diversification 13 3 What are the factors affecting the process of procurement?..............................................14 3.1 meaning of procurement process 14 3.2 Construction Procurement Process Framework 15 3.3 Factors that impact the procurement process 16 3.3.1 Time 17 3.3.1.(1)

As it has been seen throughout the years the construction industry it’s not a frequently a changing industry, however this is changing and it’s a takes a transformation practices are changing in the design, adopting new 3D technology tools as an equipment and components resulting as an improvement in management. (Miozzo and Ivvory, 2000). It always have been the principal focus in the construction achieved a major of success in terms of time and within the budget, as a result is a framework of the relationship to enhance shared communications skills and the integration of computing resources. (Jung and Joo, 2010).

The Construction industry in the United States is a well-known sector of the Country’s economy. This sector of the economy has made tremendous impact as a result of the seasoned professionals who have come together in their various set skills to carry out functions as it relates to them. These professions usually comprises of the Architect, Project Managers, Construction Managers, Estimators etc.

It is estimated by WRAP (Waste and Resources Action Programme) that the Construction Industry is responsible for some 120m tonnes of construction, demolition and excavation waste in the UK every year. According to (USEPA 2008) the United States generated approximately 250 million tons of municipal solid waste excluding the construction waste. The building-related construction and demolition (C&D) debris totals approximately to 160 million tons per year. This accounts for nearly 16 percent of non-industrial waste generation in the US. The comparison of (C&D) waste with municipal solid waste resulted in approximately two-thirds of all waste resulted from building construction, renovation and demolition in the US by (USEPA 2008).