Frank Harris was Emeritus Professor of Construction Science at the University of Wolverhampton, UK. Ronald McCaffer is Emeritus Professor in Construction Management at Loughborough University, UK. Andrew Baldwin is Emeritus Professor in Construction Management at Loughborough University, UK. Francis Edum-Fotwe holds a Lectureship in Construction and Project Management at Loughborough University, UK.

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• About the authors xiPreface to the eighth edition xiiiCompanion website xv1 Introduction 1Structure of the book 2Objectives and contents 32 Quality management 9Summary 9Introduction 9Notions of quality 9Quality in transition 10Quality control and inspection 11Quality assurance 13Total quality management 20A systems approach to managing quality 26Further Reading 32Section 1: Project production management 333 Production process improvement 35Summary 35Introduction to lean construction 35Energy 36Productivity 36Economic development 37International environmental protocols 45UK emissions 47Productivity improvement 49Management systems 54Management processes (see BS 6079) 60Employee participation 71Macro key performance indicators 87Further Reading 884 Planning techniques and methods 89Summary 89Introduction 89Planning in construction 89Who plans? 90Planning the design process 92Planning for waste management 93Planning for safety, health, and the environment (SHE) 94Planning techniques 95Other planning techniques 112Modern construction planning 119Monitoring progress and managing the time model 121Construction planning and scheduling with 4D CAD and BIM 122Planning multiple projects 123Appendix 4.A. Normal Probability Distribution Tables (Table 4.3) 125Further Reading 1265 Workforce motivation 127Summary 127Introduction 127Motivation theories 127Payment systems, remuneration and performance 132Further Reading 1446 Project cost control 147Summary 147Why cost-control is essential for construction projects 147A cost-control procedure for construction works 148Points to consider when choosing a cost-control system 159Management of the carbon footprint 160Further Reading 1607 Management of equipment 161Summary 161Acquisition of plant and equipment 161The financing of equipment 162Systematic plant selection 164The essential characteristics of a decision situation 165Setting hire rates 173Marginal costing 180Plant maintenance 180Monitoring of maintenance servicing and exhaust emissions 181Human-centred approaches 182Further Reading 182Section 2: Business management 1838 Project procurement 185Summary 185Introduction 185The construction process (BS 6079-1:2002) 186ISO/BS procurement standards 189Appointing the team/parties to the contract 190Public contracts and supplies 192Project manager/leader 193The contract 197Health and safety considerations 201Categories of contract 204Separated and cooperative contracts 204Management-oriented contracts 207Integrated contracts 211Discretionary contracts 219Performance of different contract categories 223Client risk exposure for different contract categories 223Further Reading 2259 Estimating and tendering 227Summary 227Introduction 227Parties involved in estimating and tendering 230The estimating process 232BOQ estimating 232Collection and calculation of cost information 234Project study 242Preparing the estimate 243Submitting the tender 251Estimating in management contracting 252Design and build 254Cost planning 255Cost management 255Whole-life costing 256Private finance initiative (PFI) 256Computer aided estimating 257BIM and estimating 258Summary 259Future Reading 26010 Competitive bidding 261Summary 261Introduction 261Part 1: A brief review of bidding strategy 262Part 2: The importance of accuracy in estimating 268Part 3: Some ways of using the existing theories 275Recent developments in bidding 282Client evaluation of bids 283Further Reading 28511 Company budgetary control 287Summary 287Introduction 287Preparation of budgets 288The carbon footprint 295Further Reading 29712 Cash flow and interim valuations 299Summary 299Introduction 299The need for cash flow forecasting by contractors 299The requirements of a forecasting system 301Capital lock-up 306The factors that affect capital lock-up 307Interim valuations and cash flow 312Measurement of work in activities 316Computers and cash flow 316Cash flow forecast by standardised models 319Closing remarks 319Further Reading 32013 Economic assessments 321Summary 321Introduction 321Interest 323Economic comparisons 325Profitability measures 328Inflation 332Accuracy of future estimates 336Financial Modelling 340Cost-benefit analysis 345Some worked examples 347Further Reading 354Section 3: Administration and company management 35514 Company organisation 357Summary 357Introduction 357The function of a manager 357Company organisational structures 359Departments/functions 368Health, safety, occupational welfare and pensions 376Educational qualifications and vocational training 377Corporate social responsibility 385Management attitude 386Construction companies in an internet age 387Virtual companies 388Collaborative working 388Further Reading 38815 Market planning and business development 389Summary 389Introduction 389Market planning 389The business-development process 39016 International construction logistics and risks 401Summary 401Introduction 401The international environment 402Further Reading 40917 Towards BIM and digital construction 411Summary 411Introduction 411Information and information management 412The construction company’s business 413Processes involved in a construction business 413Information needs to support business processes 416Management of contractors’ information resources 417Construction information systems 420The construction information manager 425The emergence of BIM 426BIM standards 428Digital construction 433Further Reading 43418 Financial management 435Summary 435Introduction 435Types of businesses 435Types of capital 440The control of capital 446The company accounts 449Regulatory authorities 461Further Reading 462Section 4: Self-learning exercises 46319 Questions – construction management 465Questions 46720 Questions – operational research (OR) 519Summary 519Questions 52121 Questions – six sigma 533Six sigma 534Problems (readers should start with Problem 1) 534Further Reading 555Bibliography 557Abbreviations and acronyms 571Index 577

Frank Harris was Emeritus Professor of Construction Science at the University of Wolverhampton, UK. Ronald McCaffer is Emeritus Professor in Construction Management at Loughborough University, UK. Andrew Baldwin is Emeritus Professor in Construction Management at Loughborough University, UK. Francis Edum-Fotwe holds a Lectureship in Construction and Project Management at Loughborough University, UK.

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• About the authors xiPreface to the eighth edition xiiiCompanion website xv1 Introduction 1Structure of the book 2Objectives and contents 32 Quality management 9Summary 9Introduction 9Notions of quality 9Quality in transition 10Quality control and inspection 11Quality assurance 13Total quality management 20A systems approach to managing quality 26Further Reading 32Section 1: Project production management 333 Production process improvement 35Summary 35Introduction to lean construction 35Energy 36Productivity 36Economic development 37International environmental protocols 45UK emissions 47Productivity improvement 49Management systems 54Management processes (see BS 6079) 60Employee participation 71Macro key performance indicators 87Further Reading 884 Planning techniques and methods 89Summary 89Introduction 89Planning in construction 89Who plans? 90Planning the design process 92Planning for waste management 93Planning for safety, health, and the environment (SHE) 94Planning techniques 95Other planning techniques 112Modern construction planning 119Monitoring progress and managing the time model 121Construction planning and scheduling with 4D CAD and BIM 122Planning multiple projects 123Appendix 4.A. Normal Probability Distribution Tables (Table 4.3) 125Further Reading 1265 Workforce motivation 127Summary 127Introduction 127Motivation theories 127Payment systems, remuneration and performance 132Further Reading 1446 Project cost control 147Summary 147Why cost-control is essential for construction projects 147A cost-control procedure for construction works 148Points to consider when choosing a cost-control system 159Management of the carbon footprint 160Further Reading 1607 Management of equipment 161Summary 161Acquisition of plant and equipment 161The financing of equipment 162Systematic plant selection 164The essential characteristics of a decision situation 165Setting hire rates 173Marginal costing 180Plant maintenance 180Monitoring of maintenance servicing and exhaust emissions 181Human-centred approaches 182Further Reading 182Section 2: Business management 1838 Project procurement 185Summary 185Introduction 185The construction process (BS 6079-1:2002) 186ISO/BS procurement standards 189Appointing the team/parties to the contract 190Public contracts and supplies 192Project manager/leader 193The contract 197Health and safety considerations 201Categories of contract 204Separated and cooperative contracts 204Management-oriented contracts 207Integrated contracts 211Discretionary contracts 219Performance of different contract categories 223Client risk exposure for different contract categories 223Further Reading 2259 Estimating and tendering 227Summary 227Introduction 227Parties involved in estimating and tendering 230The estimating process 232BOQ estimating 232Collection and calculation of cost information 234Project study 242Preparing the estimate 243Submitting the tender 251Estimating in management contracting 252Design and build 254Cost planning 255Cost management 255Whole-life costing 256Private finance initiative (PFI) 256Computer aided estimating 257BIM and estimating 258Summary 259Future Reading 26010 Competitive bidding 261Summary 261Introduction 261Part 1: A brief review of bidding strategy 262Part 2: The importance of accuracy in estimating 268Part 3: Some ways of using the existing theories 275Recent developments in bidding 282Client evaluation of bids 283Further Reading 28511 Company budgetary control 287Summary 287Introduction 287Preparation of budgets 288The carbon footprint 295Further Reading 29712 Cash flow and interim valuations 299Summary 299Introduction 299The need for cash flow forecasting by contractors 299The requirements of a forecasting system 301Capital lock-up 306The factors that affect capital lock-up 307Interim valuations and cash flow 312Measurement of work in activities 316Computers and cash flow 316Cash flow forecast by standardised models 319Closing remarks 319Further Reading 32013 Economic assessments 321Summary 321Introduction 321Interest 323Economic comparisons 325Profitability measures 328Inflation 332Accuracy of future estimates 336Financial Modelling 340Cost-benefit analysis 345Some worked examples 347Further Reading 354Section 3: Administration and company management 35514 Company organisation 357Summary 357Introduction 357The function of a manager 357Company organisational structures 359Departments/functions 368Health, safety, occupational welfare and pensions 376Educational qualifications and vocational training 377Corporate social responsibility 385Management attitude 386Construction companies in an internet age 387Virtual companies 388Collaborative working 388Further Reading 38815 Market planning and business development 389Summary 389Introduction 389Market planning 389The business-development process 39016 International construction logistics and risks 401Summary 401Introduction 401The international environment 402Further Reading 40917 Towards BIM and digital construction 411Summary 411Introduction 411Information and information management 412The construction company’s business 413Processes involved in a construction business 413Information needs to support business processes 416Management of contractors’ information resources 417Construction information systems 420The construction information manager 425The emergence of BIM 426BIM standards 428Digital construction 433Further Reading 43418 Financial management 435Summary 435Introduction 435Types of businesses 435Types of capital 440The control of capital 446The company accounts 449Regulatory authorities 461Further Reading 462Section 4: Self-learning exercises 46319 Questions – construction management 465Questions 46720 Questions – operational research (OR) 519Summary 519Questions 52121 Questions – six sigma 533Six sigma 534Problems (readers should start with Problem 1) 534Further Reading 555Bibliography 557Abbreviations and acronyms 571Index 577

Frank Harris was Emeritus Professor of Construction Science at the University of Wolverhampton, UK. Ronald McCaffer is Emeritus Professor in Construction Management at Loughborough University, UK. Andrew Baldwin is Emeritus Professor in Construction Management at Loughborough University, UK. Francis Edum-Fotwe holds a Lectureship in Construction and Project Management at Loughborough University, UK.

Select Guide Rating

• About the authors xiPreface to the eighth edition xiiiCompanion website xv1 Introduction 1Structure of the book 2Objectives and contents 32 Quality management 9Summary 9Introduction 9Notions of quality 9Quality in transition 10Quality control and inspection 11Quality assurance 13Total quality management 20A systems approach to managing quality 26Further Reading 32Section 1: Project production management 333 Production process improvement 35Summary 35Introduction to lean construction 35Energy 36Productivity 36Economic development 37International environmental protocols 45UK emissions 47Productivity improvement 49Management systems 54Management processes (see BS 6079) 60Employee participation 71Macro key performance indicators 87Further Reading 884 Planning techniques and methods 89Summary 89Introduction 89Planning in construction 89Who plans? 90Planning the design process 92Planning for waste management 93Planning for safety, health, and the environment (SHE) 94Planning techniques 95Other planning techniques 112Modern construction planning 119Monitoring progress and managing the time model 121Construction planning and scheduling with 4D CAD and BIM 122Planning multiple projects 123Appendix 4.A. Normal Probability Distribution Tables (Table 4.3) 125Further Reading 1265 Workforce motivation 127Summary 127Introduction 127Motivation theories 127Payment systems, remuneration and performance 132Further Reading 1446 Project cost control 147Summary 147Why cost-control is essential for construction projects 147A cost-control procedure for construction works 148Points to consider when choosing a cost-control system 159Management of the carbon footprint 160Further Reading 1607 Management of equipment 161Summary 161Acquisition of plant and equipment 161The financing of equipment 162Systematic plant selection 164The essential characteristics of a decision situation 165Setting hire rates 173Marginal costing 180Plant maintenance 180Monitoring of maintenance servicing and exhaust emissions 181Human-centred approaches 182Further Reading 182Section 2: Business management 1838 Project procurement 185Summary 185Introduction 185The construction process (BS 6079-1:2002) 186ISO/BS procurement standards 189Appointing the team/parties to the contract 190Public contracts and supplies 192Project manager/leader 193The contract 197Health and safety considerations 201Categories of contract 204Separated and cooperative contracts 204Management-oriented contracts 207Integrated contracts 211Discretionary contracts 219Performance of different contract categories 223Client risk exposure for different contract categories 223Further Reading 2259 Estimating and tendering 227Summary 227Introduction 227Parties involved in estimating and tendering 230The estimating process 232BOQ estimating 232Collection and calculation of cost information 234Project study 242Preparing the estimate 243Submitting the tender 251Estimating in management contracting 252Design and build 254Cost planning 255Cost management 255Whole-life costing 256Private finance initiative (PFI) 256Computer aided estimating 257BIM and estimating 258Summary 259Future Reading 26010 Competitive bidding 261Summary 261Introduction 261Part 1: A brief review of bidding strategy 262Part 2: The importance of accuracy in estimating 268Part 3: Some ways of using the existing theories 275Recent developments in bidding 282Client evaluation of bids 283Further Reading 28511 Company budgetary control 287Summary 287Introduction 287Preparation of budgets 288The carbon footprint 295Further Reading 29712 Cash flow and interim valuations 299Summary 299Introduction 299The need for cash flow forecasting by contractors 299The requirements of a forecasting system 301Capital lock-up 306The factors that affect capital lock-up 307Interim valuations and cash flow 312Measurement of work in activities 316Computers and cash flow 316Cash flow forecast by standardised models 319Closing remarks 319Further Reading 32013 Economic assessments 321Summary 321Introduction 321Interest 323Economic comparisons 325Profitability measures 328Inflation 332Accuracy of future estimates 336Financial Modelling 340Cost-benefit analysis 345Some worked examples 347Further Reading 354Section 3: Administration and company management 35514 Company organisation 357Summary 357Introduction 357The function of a manager 357Company organisational structures 359Departments/functions 368Health, safety, occupational welfare and pensions 376Educational qualifications and vocational training 377Corporate social responsibility 385Management attitude 386Construction companies in an internet age 387Virtual companies 388Collaborative working 388Further Reading 38815 Market planning and business development 389Summary 389Introduction 389Market planning 389The business-development process 39016 International construction logistics and risks 401Summary 401Introduction 401The international environment 402Further Reading 40917 Towards BIM and digital construction 411Summary 411Introduction 411Information and information management 412The construction company’s business 413Processes involved in a construction business 413Information needs to support business processes 416Management of contractors’ information resources 417Construction information systems 420The construction information manager 425The emergence of BIM 426BIM standards 428Digital construction 433Further Reading 43418 Financial management 435Summary 435Introduction 435Types of businesses 435Types of capital 440The control of capital 446The company accounts 449Regulatory authorities 461Further Reading 462Section 4: Self-learning exercises 46319 Questions – construction management 465Questions 46720 Questions – operational research (OR) 519Summary 519Questions 52121 Questions – six sigma 533Six sigma 534Problems (readers should start with Problem 1) 534Further Reading 555Bibliography 557Abbreviations and acronyms 571Index 577