The construction sector is of strategic importance to Europe. Over the past decade, since the Latham and Egan report, there have been many significant changes in the role of the construction cost manager. Keith Potts examines key issues and best practices in cost management of construction projects under traditional contracts and new methodologies. He examines all phases of the project life cycle, from pre-contract, through bidding, to post-contract.
The construction industry provides the infrastructure and buildings on which all sectors of the economy depend. With 11.8 million workers directly employed in the sector, it is the largest industrial employer in Europe, accounting for 7% of all employment and 28% of industrial employment in the EU.26 million workers in the EU are estimated to be dependent on the construction sector in some form.
About the Book
In this book we have attempted to identify the key issues involved in successfully managing contracts and finances on large projects. It is based on my experience as a senior estimator employed at separate times by both the contractor and the client on the Hong Kong Mass Transit Railway, then one of the largest construction projects in the world. In contrast to the British norm at the time, this massive Hong Kong project was completed on time and under budget, despite great difficulties. It was completed within budget.
The lessons to be learned from this project are identified in the case study in the last chapter of this book. The experience has shown that any project can be completed on time and under budget if proper procurement systems, planning and management methods, contracts, and financial procedures are in place, and if they are implemented by experienced and motivated personnel.
The book includes chapters one valuating variations and claims based on traditional procurement approaches, as well as the tools and techniques required under the new partnering/alliance philosophy. The book’s observations are augmented by detailed analysis of over 60 project case studies, with additional links to over 100 case studies. Many of the project case studies are drawn from Building magazine and from National Audit Office reports that the authors have received permission to publish.