About the authors xi Preface to the eighth edition xiii Companion website xv 1 Introduction 1 Structure of the book 2 Objectives and contents 3 2 Quality management 9 Summary 9 Introduction 9 Notions of quality 9 Quality in transition 10 Quality control and inspection 11 Quality assurance 13 Total quality management 20 A systems approach to managing quality 26 Further Reading 32 Section 1: Project production management 33 3 Production process improvement 35 Summary 35 Introduction to lean construction 35 Energy 36 Productivity 36 Economic development 37 International environmental protocols 45 UK emissions 47 Productivity improvement 49 Management systems 54 Management processes (see BS 6079) 60 Employee participation 71 Macro key performance indicators 87 Further Reading 88 4 Planning techniques and methods 89 Summary 89 Introduction 89 Planning in construction 89 Who plans? 90 Planning the design process 92 Planning for waste management 93 Planning for safety, health, and the environment (SHE) 94 Planning techniques 95 Other planning techniques 112 Modern construction planning 119 Monitoring progress and managing the time model 121 Construction planning and scheduling with 4D CAD and BIM 122 Planning multiple projects 123 Appendix 4.A. Normal Probability Distribution Tables (Table 4.3) 125 Further Reading 126 5 Workforce motivation 127 Summary 127 Introduction 127 Motivation theories 127 Payment systems, remuneration and performance 132 Further Reading 144 6 Project cost control 147 Summary 147 Why cost-control is essential for construction projects 147 A cost-control procedure for construction works 148 Points to consider when choosing a cost-control system 159 Management of the carbon footprint 160 Further Reading 160 7 Management of equipment 161 Summary 161 Acquisition of plant and equipment 161 The financing of equipment 162 Systematic plant selection 164 The essential characteristics of a decision situation 165 Setting hire rates 173 Marginal costing 180 Plant maintenance 180 Monitoring of maintenance servicing and exhaust emissions 181 Human-centred approaches 182 Further Reading 182 Section 2: Business management 183 8 Project procurement 185 Summary 185 Introduction 185 The construction process (BS 6079-1:2002) 186 ISO/BS procurement standards 189 Appointing the team/parties to the contract 190 Public contracts and supplies 192 Project manager/leader 193 The contract 197 Health and safety considerations 201 Categories of contract 204 Separated and cooperative contracts 204 Management-oriented contracts 207 Integrated contracts 211 Discretionary contracts 219 Performance of different contract categories 223 Client risk exposure for different contract categories 223 Further Reading 225 9 Estimating and tendering 227 Summary 227 Introduction 227 Parties involved in estimating and tendering 230 The estimating process 232 BOQ estimating 232 Collection and calculation of cost information 234 Project study 242 Preparing the estimate 243 Submitting the tender 251 Estimating in management contracting 252 Design and build 254 Cost planning 255 Cost management 255 Whole-life costing 256 Private finance initiative (PFI) 256 Computer aided estimating 257 BIM and estimating 258 Summary 259 Future Reading 260 10 Competitive bidding 261 Summary 261 Introduction 261 Part 1: A brief review of bidding strategy 262 Part 2: The importance of accuracy in estimating 268 Part 3: Some ways of using the existing theories 275 Recent developments in bidding 282 Client evaluation of bids 283 Further Reading 285 11 Company budgetary control 287 Summary 287 Introduction 287 Preparation of budgets 288 The carbon footprint 295 Further Reading 297 12 Cash flow and interim valuations 299 Summary 299 Introduction 299 The need for cash flow forecasting by contractors 299 The requirements of a forecasting system 301 Capital lock-up 306 The factors that affect capital lock-up 307 Interim valuations and cash flow 312 Measurement of work in activities 316 Computers and cash flow 316 Cash flow forecast by standardised models 319 Closing remarks 319 Further Reading 320 13 Economic assessments 321 Summary 321 Introduction 321 Interest 323 Economic comparisons 325 Profitability measures 328 Inflation 332 Accuracy of future estimates 336 Financial Modelling 340 Cost-benefit analysis 345 Some worked examples 347 Further Reading 354 Section 3: Administration and company management 355 14 Company organisation 357 Summary 357 Introduction 357 The function of a manager 357 Company organisational structures 359 Departments/functions 368 Health, safety, occupational welfare and pensions 376 Educational qualifications and vocational training 377 Corporate social responsibility 385 Management attitude 386 Construction companies in an internet age 387 Virtual companies 388 Collaborative working 388 Further Reading 388 15 Market planning and business development 389 Summary 389 Introduction 389 Market planning 389 The business-development process 390 16 International construction logistics and risks 401 Summary 401 Introduction 401 The international environment 402 Further Reading 409 17 Towards BIM and digital construction 411 Summary 411 Introduction 411 Information and information management 412 The construction company''s business 413 Processes involved in a construction business 413 Information needs to support business processes 416 Management of contractors'' information resources 417 Construction information systems 420 The construction information manager 425 The emergence of BIM 426 BIM standards 428 Digital construction 433 Further Reading 434 18 Financial management 435 Summary 435 Introduction 435 Types of businesses 435 Types of capital 440 The control of capital 446 The company accounts 449 Regulatory authorities 461 Further Reading 462 Section 4: Self-learning exercises 463 19 Questions - construction management 465 Questions 467 20 Questions - operational research (OR) 519 Summary 519 Questions 521 21 Questions - six sigma 533 Six sigma 534 Problems (readers should start with Problem 1) 534 Further Reading 555 Bibliography 557 Abbreviations and acronyms 571 Index 577.