Introduction

Construction projects consume time, money, and resources. Effective project management ensures delivery within cost, time, and quality boundaries. Management focuses on controlling cost, time, resources, and financing through applied, practical techniques.

🔹 Example:
Consider the construction of a 6 km gas pipeline in Lagos (Opebi to Allen). Without proper scheduling of pipe delivery, coating, and trenching, delays can occur, leading to idle labor and machinery costs. Good project management minimizes waste and ensures smooth coordination.

1.2 The Construction Industry

The construction industry is one of the largest contributors to GDP globally. In the U.S., construction expenditure reached $1.2 trillion in 2006 (~9% of GNP). It also provides massive employment opportunities.

Construction is heterogeneous and complex, divided into:

• Housing: Residential estates, apartments.

• Nonresidential buildings: Schools, hospitals, offices.

• Heavy/Highway: Bridges, roads, flyovers.

• Utility: Power plants, water supply, sewage.

• Industrial: Refineries, factories, oil & gas facilities.

🔹 Example:
Nigeria’s Dangote Refinery represents industrial construction, while the Second Niger Bridge is a heavy/highway project. Both require vastly different skills, contractors, and resources.

Contracting and Project Delivery in Construction

1.10 Negotiated Contracts

Sometimes, instead of competitive bidding, owners handpick contractors based on reputation, expertise, or past working relationships. Terms are then negotiated.

• Common Form: Cost-plus-fee (owner pays actual cost + contractor’s fee).

• Advantage: Owner gets a trusted contractor and potentially higher quality work.

• Risk: Less price competition may lead to higher costs.

🔹 Example:
A hospital expansion in Lagos may require sensitive medical gas piping. Rather than bid, the hospital selects a contractor with proven expertise in medical facilities and negotiates a cost-plus contract.

1.11 Subcontracting

Prime (general) contractors often sublet portions of work to specialty firms (HVAC, electrical, roofing). The prime remains fully responsible to the owner.

• Advantage: Specialists are more efficient and licensed.

• Risk: Requires careful coordination to avoid conflicts/delays.

🔹 Example:
In a shopping mall project:

• Prime contractor handles concrete structure.

• Subcontracts escalator installation to a mechanical contractor.

• If the escalator fails, the prime is still liable to the owner.

Why Project Management Matters (in construction)

• Reality: You price once; profit is made (or lost) by daily decisions in the field.

• Implication: Uncertainty (weather, utilities, design changes, labor supply) means planning + tight feedback loops or your schedule/costs drift fast.

• Two modes of control:

  • Contractor-centric (fixed-sum): Self-interest drives schedule/cost control.

  • Owner-centric (CM/Design-Build/Cost-Plus): Advisory/management services to best achieve owner objectives.

🔧 Field example (earth dam): A 5-day rainfall shifts haul road moisture content → compaction falls below spec → rework risk. A PM with a daily plan + moisture/roller pass checks avoids rework and delay damages.

2.2 What Makes Construction PM Different

• You’re coordinating multiple companies, not just managing in-house teams.

• Your authority is contractual (specs, clauses, delegated agency), not purely line management.

🧭 Tactic: Put the RACI (Owner / A-E / PM / Subs) on one page, tie every decision to a contract clause or submittal—that’s your authority backbone.

2.3 Discussion Viewpoint

We’ll speak from the general contractor’s seat (but methods apply to owner’s CM or design-builder with light translation).