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Construction management

Construction management

CONSTRUCTION requires not only DESIGNERS, CONTRACTORS and SUPPLIERS

but also the specialists who can deal with them.

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CONSTRUCTION requires not only DESIGNERS, CONTRACTORS and SUPPLIERS
but also the specialists who can deal with them.

Share:

Construction management is a set of organizational activities aimed at comprehensive management of all the construction processes starting from development of the project concept to commissioning of the project.

Construction project management helps both to optimize financial and time expenditures and to monitor quality at all construction stages: from concept design and process design solutions, delivery of construction materials and required equipment, construction and installation operations to handing over the project to the Customer.

The main objectives of the specialized engineering SEVERIN DEVELOPMENT company invited for construction management of the project are to achieve the planned operational indicators and production capacity according to the schedule.

Construction project management solves the following tasks:

  • Obtaining the expected financial viability of the project;
  • Meeting the agreed project budget and time frames;
  • Assuring conformity to the Russian and international construction standards;
  • Maintaining high work quality;
  • Protecting economic interests and legal rights of the Investor;
  • Mitigating construction project risks.

SEVERIN DEVELOPMENT offers two construction management options

  1. Technical Coordination Services (Owner's Engineer) According to the Federal law No. 337-FZ of 28 November 2011, it is a compulsory condition for coordinating the construction of industrial and large commercial facilities on the territory of the Russian Federation. According to the law, so called Owner's Engineer is a specialized company authorized on behalf of the Owner to arrange the following activities:
    • preparing specifications for engineering surveys and developing design documents.
    • concluding contracts for performing engineering surveys and developing design documents for construction, reconstruction or overhaul of capital construction facilities.
    • monitoring engineering survey and design documents with regard to the timelines, controlling quality of design documents and adjusting the estimated construction cost.
    • approving design documents and submitting them to the appraisal.
    • arranging the works on getting appraisal, delivering design documents, getting and examining comments on the design documents.
    • defending design solutions together with designers.
    • carrying out technical supervision over construction, signing the documents required for obtaining construction permit and for commissioning capital construction facilities, as well as the other functions stipulated by Urban Development Code of the Russian Federation.
  2. PCM-contractor services (turn-key design and construction, delivery and installation of mechanical, electrical and plumbing equipment, tooling, etc.) Construction project implementation with involvement of SEVERIN DEVELOPMENT company under the terms and conditions of EPCM-contract according to SEVERIN Efficiency Assurance Program provides the Customer with the following advantages:
    • Meeting the construction quality standards;
    • Meeting the construction deadlines;
    • Meeting the construction budget.

Three key construction parameters: time, money and quality are interdependent and influence each other directly. Proper construction project management is essential for maintaining balance between them.

Sigitov Roman Anatolyevich

Sigitov Roman Anatolyevich

Director General
SEVERIN DEVELOPMENT

 
  • Monitoring the construction scope and quality

    Monitoring the construction scope and quality is the main feature of any investment construction project. Reduction of construction budget and deadlines does not ensure an investment effect if the scheduled quality parameters of the project are not reached. Quality and scope are specified in design documents. Supporting the designers, checking and monitoring the results of their work is the most important function called construction project management. Construction Supervision Department of SEVERIN DEVELOPMENT is responsible for quality control of work during the construction.


    Choose the prime contractor carefully. Avoid situations when the chosen prime contractor is a shell company and cannot perform entrusted functions due to lack of personnel, money in account, experience, construction machinery, etc. In such emergency situations, construction project management is anti-recessionary and shall be reduced to one solution – to get rid of the dishonest contractor as soon as possible and arrange handing over of the site to a new prime contractor.

    Петр Минченко

    Petr Minchenko

    Head of Construction /
    Engineering Supervision
    Department

     
  • Monitoring the construction deadlines

    Meeting construction deadlines directly depends on three factors:


    1.


    Does the Contractor know what he is going to construct? (in other words, is the Contractor provided with the design documents?).

    2.


    Can the Contractor meet the specified deadlines? (i.e. is the Contractor provided with the required man power, qualified engineers, machinery and equipment?).

    3.


    Has the Contractor received financing timely and fully?


    Do not forget that meeting the construction deadlines also depends on methods of calculation: sample or rated. However, urgent deadlines are very often taken instead of estimated ones, when construction must be completed by a specific date by any means.


    If the design documents are incomplete, one can assure 100% that the prime contractor will carry out extra works during the construction. As a result, the construction will become more expensive and the specified deadlines will not be met.

    Вадим Пимочкин

    Vadim Pimochkin

    Head of Technical
    Coordination Department

     
  • Monitoring the construction cost


    1.

    Concluding a general contractor contract according to estimated cost.

    2.

    Concluding a general contractor turn-key fixed price contract.


    Based on the experience of SEVERIN DEVELOPMENT company, the first approach is more reliable. Under such a contract, the work scope and as a result the cost will increase only in case of gross errors and miscalculations in design solutions. Therefore, high quality thoroughly developed and complete design documents are required to avoid construction appreciation.


    The second approach involves assignment of all risks related to potential increase of cost during the construction to the Contractor. In this case the Investor shall conclude a turn-key construction contract with fixed price not subject to any changes.


    When concluding such a tough contract, the Contractor usually insists on independent development of design documents. However, a fixed price contract, seemingly reliable, does not exclude change of work scope and therefore cost in case of detecting gross errors in design documents. If the Contractor fails to reach an agreement with the Investor and has to construct using the money specified in the contract instead of the sum actually required, this will almost always lead to construction quality deterioration. And to further economic disputes.

    Сергей Прокаев

    Sergey Prokaev

    РHead of Financial
    and Construction Audit
    Department

     

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