With the growing expansion and development in business lines with time shows that that the success of the economy is dependent on smooth functioning of various business, one of which includes the construction and built contract as on it the success of all other business is dependent.(Haimes, 2015.) When the overall infrastructure of the economy is growing at a fast phase like roads railways, buildings, it ultimately increases the prospects of doing business in that economy as it mobilizes labour, raw material which ultimately leads to increased in productivity and overall growth of economy. As all other business is dependent on how well the infrastructure is there in the economy it is very important for the construction business to be well managed and structured.
Keeping all these factors our present research is done which shows the deep insight of application of managerial principles in construction company.
The below mentioned are the principles of management stated for Balfour Beatty which is well known and established name in the construction and building sector:-
Division of work: In Balfour Beatty the work assigned to the employees or the individuals should be done in the basis of their capabilities and potential, as the Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.(Kibert, 2016.)
Authority: It is a right which allows a person who is a position and who can issue commands, along with which must go the balanced responsibility for its function. The authorities in the organization must be equal in all context towards all the individuals within the business corporation.
Discipline: The workforce should obey the instructions of the seniors but this principle is a two-sided one as the individuals will be obeying when the management play their part well and proves to be a good leader.
Unity of direction: It is of very much significance that the employees engaged in the same kind of activities must have the same objectives in a single plan, as this is essential and will ensure unity and coordination in Balfour Beatty. Unity of command does not exist without unity of direction but does not necessarily flow from it.(McGeorge, Zou, 2012.)
There are certain qualities which should be there in a individual who is working in the human resource development department to enhance the work performance as well as to produce a quality of work for the business organisation. Motivation is one of the important factor which shall effect the individual. With motivation one shall be positively encouraged towards his work and goal shall be achieved. The factor of motivation help an individual to encourage in his work. Th other quality which shall effect the individual is leadership quality.(Harris, McCaffer, 2013.) A leadership quality help the person in focusing on to the goal. With leadership quality, a good communication skills shall be began to inculcate in the individual. Being in leadership place, on should know how to lead the task and shall be the necessary actions to be taken for the goal. Such factors will always effect an individual.(Ding, Zhou, Akinci, 2014.) Conduct is also one of the important factor to effect the individual which shall be counted under behaviour. It is very important that what kind of behaviour is being prevailed by an individual as only the positive attitude and behaviour shall lead towards achieving the goal of an individual in human resources development department.
The group responsible for planning and executing the project is known as project team. The main components or the members of the team includes of a Project Manager and a variable number of Project Team members, who are brought in to deliver their tasks according to the project schedule.
The general roles and responsibilities of the members are explained further. The Project Team Members are responsible for executing tasks and producing deliverables as outlined in the Project Plan and directed by the Project Manager, at whatever level of effort or participation has been defined for them.(Wang, Kim, Love, et.al., 2013.) And in the case of the larger projects some of the team members are also assigned and allotted the roles of the team leads providing tasks and the technical leaderships and guidances and also have to manage and maintain the a portion of the plan.
And the following are the specific roles of the professionals within the project team. The Project Manager is the professional and is responsible for ensuring that the Project Team completes the project and also develops the Project Plan with the team and manages the team’s performance of project tasks. Project Director is a manager and also an another professional with demonstrable interest in the results of the project and has a responsibility of securing spending authority and resources for the project.(Sacks, Pikas, 2013.)
Lateral Structural Arrangements: For attaining the goals and objectives the organisation the work of individual members must be linked into coherent patterns of activities and relationships. This is achieved through the structure of the organization and the nature of relations. The concept includes individuals of different departments and groups. These relations exist on the same organizational level and involve coordination and consultation.(Motawa, Almarshad, 2013.) It is very important for the company to introduce a kind of organisational structure because it shall able the work to process in a management form and when the work has been carried out in a particular management then a quality shall be attained by the company. Such organisational structure shall be carried out by the company if the working has been done in line formed that is for the work to carried out a manager shall be there. When a team has been appointed in the organisation then a team leader shall be appointed so that the work will be carried out in a fine quality such system shall be addressed as line management in which all the work has been carried out by the person line in a organisation. There are various theories to be included in the organisation structure like mission theory or some strategies so that goal shall be achieved on time.(Abanda, Tah, Keivani, 2013.)
In order to familiarize the trainees of how the management techniques are applied in construction projects a brief knowledge of how the construction projects are being organized. For the purpose of reference as ‘Balfour Beatty construction company is taken for consideration various stages of the project undertaken by them includes:
Concept: Before the actual construction of the project the designing job by the architect is done. For this purpose various meetings are conducted which answers the question of for what purpose the construction is being undertaken and then accordingly the architect supervises the engineers for electrical,lighting and plumbing activities.(Cheng, Teizer, 2013.)
Contract and Bid documents: Once a outline for construction is prepared the builder prepares contract documents for bidding which includes conditions for potential builders for taking up the contract which specifies the layout of the site materials involved. Various engineers are employed which includes a civil engineer responsible for preparing structural and mechanical plans, a structural engineer who is responsible for preparation of electrical plans specifying bidding requirements to the bidders preparation of contract forms specifying the contract conditions basically the office documents related work.
Bidding: Now the final bidding is done that is inviting bidders for the concerned projects through publication in trade journals, newspapers and other print and electronic media .
Construction: After the selection takes place actual fieldwork is undertaken which involves taking a building permit from the municipality, subcontracting if it is needed and managing the subcontractors.
Construction Payments: After the construction is completed payments for the same is required to be made which includes either finalizing payments on the basis of percentage of completion method or on the completion of the whole work.
While planning for different stages of the project management should be well organized and managed. It is the duty of the management to specify the architect to consider various aspects of safety while designing, to formulate various monitoring controls so that various activities right from designing the site layout to the preparation of the contract document can be aligned with each other. Further the monitoring process also include updation of contract documents if there is any change in the requirement of raw materials.
Apart from managing all these administration work the most important consideration is managing the supply of raw materials that is they are available on a timely basis so that the work is not hindered together with labour management and the cost related to both of them is as per our specific budgets drawn for them. For managing all these organization can go as per the supply chain management which ensures that the sourcing is as per the production and accordingly the transportation are managed and finally the information system needed to manage and coordinates all these activities.(Volk, Stengel, Schultmann, 2014.) If all these activities are managed properly raw materials are available in time and there is no wastage and increase of abnormal costs. All these activities ultimately helps in checking our standard cost and controlling them on time by different cost control methods.
While controlling various costs and delivering the materials to the site quality aspect should not be avoided as the quality of our defines the extent of our future work. For this purpose meeting the various construction laws and abiding by what we have written in our contract document should be strictly adhered to. As if it is not done it can lead to serious consequences which even involves death that is loss of human lives, increased maintenance cost and loss of reputation because of not meeting the targets in time. Further to minimize the unavoidable risk associated with construction contracts insurance of buildings can be taken, risk sharing can be done between the owner and the party like for example there is an escalation expected in near future in the price of raw materials which can hinder the contract revenue for this purpose an escalation clause is to be inserted which specifies the increase of contract price with the increase in raw material price. Some other unavoidable risks includes an employee acting outside the scope of their authority, changes which are not documented, these risks although comes in the category of unavoidable risks but the effects of these can be minimized by conducting periodical audit time to time.(Zhang, Shen, Zhang, 2013.)
Considering all these factors managing a construction contract not only involves the managing of technical aspect but taking care of how to manage those aspects together with adhering to the quality specifications of the client as well as the applicable law with a proper risk management program.
When any construction business has been carried out in a business organisation a tender has to be passed by the company. Tender has been made by the company for various other organisation to avail the services. While making of a tender there are various other factors which is to be taken in care that is what kind of labour shall be used in construction in what number. The charge of labour shall also be included in tender.(Loorbach, Wijsman, 2013.) As it is a construction company so the main business they deal with is the material used in construction so a estimation has been made on the material used by the company. While making a tender the company must see that it shall fit to pocket of every organisation that is it shall be in budget of organisation
Its very important to manage contract in construction business. It has been seen that various business organisation have a work of signing deals with the each other and for that contact has to be made. It is very important that there shall be formation of a valid contract and a valid contract shall be made by including essential elements of contract. When a valid contract has not been formed between the parties then it shall raise legal obligation to the party. A legal obligation shall refer to rights and duties which are raised out of contract. While making of a valid contract offer, acceptance, consideration, agreement are the basic essential elements to be included in the formation of a contract.
An organisation much include certain technique by which various aspects shall be attained in terms of various field for an example an organisation must include organisational culture in their management so that a healthy managing environment shall be maintained in the organisation.(Sacks, Pikas, 2013.) Besides that various legislature and Norms shall be included in the organisation related to business so that no legal liability shall fall on to the company and even the legal liability fall there shall be a remedy behind it for an example when an employer make a standard building contract with quantities and any breach occur in that contract then according to legislation legal actions could be raised against the party who is not innocent. Working in the professional manner is very important and for that certain techniques shall be used which will bring pure form of management in the professional working of the employee in the construction.
From the above carried out analysis it has been concluded that the principles of management and their application for the above stated organizations. An explanation of the use of contracts to manage construction projects, and also the explanation of the the importance of selecting the most appropriate methods of procurement and contracting for a project. Moreover the critical evaluation of the techniques used to manage and also explanation of the importance of quality control and protection against risks and how they have been managed.
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