AN UNDERGRADUATE COURSE IN THE CM PROCESS

BACKGROUND

At Washington State University, we recognized several reasons to establish a full-semester course concerning the Construction Management (CM) Process. We feel that our students should be aware of the entire design/construction process. We also feel that the students should understand the numerous project delivery methods, particularly the CM process. As several of these project delivery methods use the interview/proposal method of determining project participants, we feel that the students should be aware of this process. We also recognized a need to give the students an opportunity to develop their communication skills, using their knowledge of management techniques.

The construction industry has experienced some major changes in the last two decades. The "traditional" system of Owner-Architect-Contractor using a low-bid, lump sum contract has been found to not adequately address every . situation. Complex cost, time, or quality constraints require additional management techniques that are difficult to implement under the traditional contract arrangement. Owners are using a wide variety of project delivery methods, such as Design-Build and Construction Manage­ment, to achieve satisfactory project results. As these systems require the construction professional to be involved during the entire design/construction process rather than just during the construction phase, it is important that our students are aware of the entire process.

Construction Management and Program Management are becoming more popular with Owners. The CM firm is able to use management techniques, such as value engineering, constructability reviews, progress estimates, and progress scheduling/monitoring, to provide controls during the design/construction process. It is important that our students understand the CM process and the impact of using management techniques in the project. The students need to know applications for the management techniques and specialized software they have learned in courses throughout their undergraduate education.

Many CM and Design/Build contracts are awarded on the basis of experience and perceived ability to perform, normally in response to a request for proposal, rather than on the basis of low bid. The marketing skills for this method, including interviewing and proposal writing, vary considerably from the contractor's traditional approach. The construction professional should be aware of this process and the skills necessary to be successful.

We decided to use the CM process as a vehicle to enhance the students' communication skills. Our advisory board has stressed the importance of preparing the students with verbal and written communication skills. The success of construction professionals largely depends on the effective­ness of their communication skills.

These criteria were used to develop a senior-level course in the CM process. This course has been in place for three years, with the necessary evolutionary changes.

THE COURSE

This course, entitled CM: THE PROCESS, is a 3-credit hour (semester) course for Construction Management seniors that have completed the basic estimating, schedul­ing, computer, and drawing courses. Our Construction Management program is in the School of Architecture and has an emphasis on commercial building construction. The CM course is accordingly directed to the commercial building process and architectural processes. However, we do introduce engineering construction processes, as about 30% of our graduates enter the Heavy/Highway segment of the construction industry. The course consists of lectures, extensive reading assignments, and a semester-long project for the students to simulate a CM firm in proposing and interviewing for construction management services.

Lectures

To properly understand the use of the CM process, it is necessary to examine in detail all of the current construction project delivery systems. The traditional system, Owner/Architect/Contractor, is examined, including all of its contractual arrangements, such as lump sum, cost plus arrangements, and cost plus with a guaran­teed maximum price (GMP). We examine the use of the system, where it works and where it fails. We look at the trends and usage of this system. As the problems with this system greatly affect the techniques used in other systems, the problems and causes are examined closely. Care must be taken, however, to avoid totally discarding this system, as it is a viable delivery, system when all parties completely fulfill their obligations m a team-like atmosphere. This system is still the most workable system for the straight­forward project, or the smaller project.

Design-Build and CM use many of the same control tech­niques to address the problems prevalent in the traditional system. The structure of the Design-Build team is different than the CM team, with different motivation. Design-Build and its favorable applications are examined in the lectures. It is important that the students realize that there are appropriate applications for each delivery system, and that no one delivery system is the solution to all problems.

The different configurations of the CM delivery system are studied in detail. Agency CM and extended CM arrange­ments are examined, along with the appropriate contracts and responsibilities. The responsibilities of the GMP-CM are also detailed. The students are made aware of the difference of the CM "at risk" and the CM "not at risk." For simplicity, Agency CM is used as the example of services for the remainder of the discussion on CM services. Agency CM can provide the broadest range of services, acting strictly as the Owner's representative without further vested interest.

The entire design/construction process is then studied. The five major phases of the process are defined: Pre-Design, Design, Bid/Award, Construction, and Post-Construction. All of the phases are broken down into the individual tasks and relationships with the major manage­ment systems of Budget/Cost Management, Time Management, Quality Management, and Project Management.

Particular emphasis is placed on the Pre-Design and Design phases, as the students are least familiar with the activities performed during these periods. Architectural program­ming is perhaps the hardest concept for the construction students to understand, as it uses a different viewpoint and terminology. It is important that the students understand the progressive steps in the design process and where the management techniques fit to control the design within the established scope statement. The key to the effectiveness of the management techniques is the timing of the cost or time savings measures.

Specific management techniques and tools are related to the CM tasks. Procedures, timing, specific sub-tasks, soft­ware, and methods are examined. The control methods of overall Project Management are looked at in detail. We include a discussion about "expert system" software applied to communicating top management's philosophy and methods to the field personnel. We use several examples prepared on THE DECIDING FACTOR software. Different types of estimates are detailed and associated with the various phases to which they are applicable. Scheduling techniques are detailed, from the broad Master schedule to short-term work schedules, in both the Design and Construction phases. Value analysis (engineering) techniques are discussed, including a discussion of constructability review. Bidding and procurement strategies are reviewed with regard to the effects on the overall project. Reporting and data management are examined, including an introduction to EXPEDITION, a popular Contract Management software package.

The Construction Management Association of America (CMAA) has prepared the definitive resource material on the state of Construction Management today. CMAA's Standards of Practice is an extensive volume describing the services provided by the CM. Their accompanying contracts are the most current of any standard contract forms for the construction management industry. This information has helped considerably with organization and explanation of the CM services.

Since the marketing approach for CM services is different than that for a general contractor, considerable discussion is oriented to the proposal/interview system, the CM's marketing approach, and the contents of a proposal and presentation. Actual proposals from CM firms, Architec­tural firms, and Design-Build firms are used to illustrate the proposal process. An understanding that sales and marketing work is necessary to obtain projects is conveyed in this section. The dynamics of personal contact is explained and demonstrated. Much of the lecture material in the marketing area is aimed at guiding the students through the marketing projects they are preparing during the semester.

Reading

Fairly extensive reading and text assignments are required for this course. The reading is intended to provide information to complement the lectures, and to act as a reference for the students' projects. The reading informa­tion concerns four areas of emphasis: the CM Process; Construction Relations; Business Relations; and Presentations.

The CM Process

There are few current up-to-date texts in this area. Most texts on this subject are related to CM in engineering construction, which is acceptable as it gives the students a different perspective on project make-up and terminology. We are currently using PROFESSIONAL CONSTRUCTION MANAGEMENT by Barrie and Paulson (2nd Edition, 1984, McGraw-Hill). I have supplemented this text with reprints of articles, papers, and some of my own writings on the subject. Other texts are available, but most are too sophisticated for the undergraduate student.

Construction Relations

A remarkable study of construction relations has been produced and made available this year. SKYSCRAPER is a five-part series on videotape produced for PBS this year. A companion text has been published, SKYSCRAPER by Karl Sabbagh (1989, Viking). This text and video production follows the fast-track construction of the World Wide Plaza in New York City, using a Construction Manager. The problems of constructing such a facility are depicted realistically. The most important areas illustrated are the relationships between the parties. Students traditionally have a hard time realizing the intensity of these relationships. The book and tapes clearly indicate the personalities and conflicts that have to be overcome to successfully complete a project.

The book is assigned for reading at the beginning of the course. (A short quiz is given that amounts to 5% of the students' grade.) Examples from the book are used throughout the discussion of the CM process. The examples enable the students to appreciate the controls necessary to keep the project within budget and time constraints. The tapes are shown during the discussion of the construction phase. (The fifth part is an interesting explanation of the design of skyscrapers, but isn't neces­sarily germane to a discussion of Construction Manage­ment.)

Since the book and tapes explore several points of view, it is necessary to emphasize the CM point of view in class discussion. Lively discussion, involving most of the class, has been generated from this experience.

Although the tapes and book have similar information, it is important that the students read the book. It explains many concepts that they may not totally understand by merely viewing the tapes. The students initially are not particularly delighted with the prospect of reading a 380-page book, but most find it easy to read and quite entertaining. Several of the students have expressed that they were glad they had read the book.

Business Relations

To give the students "street smart" perspectives on sales and marketing, we recommend that they read either SWIM WITH THE SHARKS WITHOUT BEING EATEN ALIVE, Harvey B. Mackay (1987, Morrow) or WHAT THEY DON'T TEACH YOU AT THE HARVARD BUSINESS SCHOOL, Mark H. McCormack (1986, Bantam). Both of these books are available in paperback. These books are rather quick and easy to read, and given the student a unique marketing perspective. Both books talk about one-on-one relationships that are so very important in obtaining and retaining business clients.

Presentations PRESENTATIONS PLUS by David A. Peoples (1988, Wiley), also in paperback, is a well-written book specifically tailored to formal presentations. It gives organizational hints, audio-visual information, and hints on keeping the audience attentive. This book is an excellent resource for the students in preparation of their presentations.

THE PROJECT

A semester-long course project is intended to demonstrate the students' knowledge of the CM process and to give the students experience in interviews, proposals, and presentations. This project challenges the student in a competitive atmosphere, encouraging individual innovation.

In this project, each student plays the role of being involved in a Construction Management firm responding to a Request for Proposal (RFP) for Construction Management services. The students are expected to conduct two face-to-face interviews with the potential client, submit a full written proposal in response to the RFP, and give a formal presentation to the owners.

The project is designed for the students to tailor the services of a CM firm to the needs of an owner in a specific situation, using the Agency CM method. We have used a different owner scenario each year to avoid repetition. The formulation of a new scenario each year takes a little extra time, but provides an opportunity to make the project appropriate to current local conditions and to the make-up and interest of the class. A little imagination is all that is really required to formulate the problem, as the RFP is a descriptive document not requiring drawings or other detailed documents. The first year we used a microbrewery as the project. Although the students were very interested in the ultimate product of the facility, and probably did some hands-on research on the product, there was little information available on small breweries for the students to have an understanding of the physical project requirements. The second year, we used a nursing home project named "The Palouse Home for Skaters and the Gripless." The third project was a mixed-use development consisting of apartments, a shopping center, and an office building. All of the projects were in the $30-$40 million range, allowing the students to consider full staffing for the project.

The Request for Proposals contained the following information: a brief project description, a listing of construction management services required; a description and listing of information requested in the proposal (proposed plan, personnel and resumes, qualifications of the firm, description of past projects, references); informa­tion regarding submittal of proposals; and a description of the selection procedure. The RFP indicated that selected firms would be interviewed. However, all of the students are required to give a presentation.

During the project phase of the semester, which is roughly the second halt of the semester, a second faculty member assists in the interview process. We feel that the students need experience in interviewing with more than one indivi­dual, and a panel of two individuals for the final presenta­tion is more realistic. We try to give the students a different point of view from each interviewer, as happens frequently in the industry.

After the receipt of the RFP, the students have their first interview with one of the "Owners." This first interview is intended to be an introductory or "cold call" face-to-face interview. This interview gives the students an opportunity to introduce themselves and their "firms." These interviews are intended to be five to ten minutes in length, merely , introducing the two parties. Even these interviews require preparation by the student. Most of the students prepare some sort of business card to leave with the interviewer. Several students have prepared brochures to leave with the potential client, ranging from one-page descriptions of services to full color, multiple-page brochures. This is basically a sales call, requiring the students to understand their services and use a marketing approach. We have received everything from a "what do I do now" approach to a super-aggressive "hire us immediately and don't mess around with interviews" approach.

The proposals are normally due about a month after the issuance of the RFP. The RFP states the information required for the selection process. Information is provided to the students in lectures concerning proposals. Examples of several professional proposals are used to illustrate what is expected in a proposal. Despite these examples, we never instruct the students exactly what to write in a proposal, leaving ample room for student innovation. The students have been introduced to word processing and publishing software prior to this course, but have had little

opportunity to show their creativity. They are able to incorporate output from scheduling and estimating soft­ware as well. These proposals normally contains a cover letter, description of the scope of the project, details of the particular proposal, CM team organization, team member resumes, and CM firm experience. A great deal of this information is fabricated by the student. The thought process of creating information to meet the project requirements is very similar in matching the firm's experi­ence to the project needs. The proposals are graded 10% on the proposal's appearance and appeal, and the remainder on the proposal meeting the owner's needs as stated in the RFP. The written proposal consists of 30% of the course grade.

After submittal of the written proposals, the students are scheduled to interview the other "partner" in the project in another face-to-face interview. The purpose of this interview is fact-finding about the project, rather than a pure sales call. The students are to assume that they have been "short-listed" and are finding out more information about the project for their presentations. This interview requires the student to look deeper for insight into the project. We try to reveal more information about the project in the interview, if asked. We normally try to emphasize certain areas of concern for emphasis in the presentations.

The two interviews are weighted for 20% of the course grade. Most of the students receive a good grade for these interviews, as the purpose of the interviews is primarily for the experience. There are no correct or wrong approaches in these interviews, as long as the student does some preparation.

The formal presentation consists of 45% of the course grade. We see a demonstration of the level of understand­ing of the CM process with each student in this presenta­tion. We allow the students one hour each for their presen­tations, nominally allowing 45 minutes for the presentation and 15 minutes for questions. Realistically, most of the student presentations range closer to 30 minutes, but some extend longer.

The purpose of these presentations is, of course, to sell the CM services. The CM firm needs to demonstrate to the owner that they are the one firm best suited for the project. This involves demonstration of expertise in CM services, and the documented ability to solve the particular problems of the project.

The students normally use some visual aids such as overhead projector, slide projector, flip charts, wall charts, and handouts. We have had several students use their computers with a computerized slide show of the outline and accompanying graphics, using HARVARD GRAPHICS and POWER POINT for the slide-show software. The majority of the students go through the project sequentially, illustrating their services as they go. The most effective presentations address viable problems of the project, proposing solutions and services to demonstrate their interest and ability to the owner.

The questions asked by the two "partners" normally relate to the presentation to clarify the information. The ques­tion/answer session gives an opportunity for the inter­viewers to see the students' level of understanding of the topics beyond the prepared statements. Occasionally, we are able to reveal an insufficiently prepared student through the questions and answers.

Immediately following the presentation, we give the student a critique of their presentation. This immediate critique helps the students become aware of their successes and failures while the presentation is fresh in their minds. Although this immediate critique can present an uncomfortable situation when the student does a particu­larly poor presentation, it is generally received well by the students. A certain amount of diplomacy is required of the interviewers in the critique to avoid hurting the student. It is important to let the students know what they did right and what their strong points were. These critiques serve as a good format to add to the students' self-esteem and confidence. Criticism should always be constructive.

It is important to have a panel of at least two interviewers for these interviews to provide a fair view of the presenta­tions. The students are graded primarily as they would be in an actual situation, using a score sheet related to the RFP requirements. The students are made aware of the criteria for the grading, but they are not provided the score sheet. The scoring includes a section concerning prepara­tion, professional attitude/appearance, and visual aids, amounting to about 10% of the total score. Another 10% is related to whether the presentation "sold."

These presentations obviously take a great deal of time. We cease lectures during the last three weeks of the semester, using the class period for some of the presenta­tions. The remainder of the presentations are given in the evenings, usually two per evening.

Generally, the students consider this course as "torture," primarily due to the presentation requirements. The successful responses to the proposal, in both the written proposal and in the presentation, involve a creative and thoughtful approach from the student. This project provides the students with the opportunity to go beyond just repeating text or lecture material, and to meet a challenge similar to the challenges they will face in the industry. Upon completion of the course, the students look back upon the experience as a valuable one.

CONCLUSIONS

The CM Process and the different management concepts are difficult concepts for the undergraduate student. Care must be taken to properly establish an understanding of traditional project delivery systems and the reasons for using the CM system. By using a well-laid foundation, association with actual situations, and student involvement in the subject, the undergraduate can achieve an adequate understanding of the entire CM process.

As in most courses, it is important to adjust the course material each time the course is presented. During the formal presentations, the lack of understanding of certain concepts becomes obvious. More attention is required on these areas in subsequent semesters. Careful monitoring of changes in the CM industry is necessary. CMAA is currently in the process of changing many of its documents, as are other organizations. CMAA provides current information in the quickly changing CM industry.

The Pre-Design and Design phases are the most difficult phases of the process for the Construction Management student. Careful correlation of CM services with the Design activities helps make these areas more familiar.

The proposal/interview marketing system is a new concept to most students. The time frame and content of the elements of the marketing system (and the student project) is essential information for the students. A general overview of the marketing process is necessary fairly early in the course, with specifics regarding interviews, proposals, and presentations dust prior to the start of the project segments, when it is most applicable.

As our curriculum focuses on commercial building construction, a text on the CM Process using architectural terminology would be desirable. The text being currently used is a good text, but it emphasizes civil engineering construction and doesn't use the same terminology as the CMAA standards.

The use of SKYSCRAPER has greatly enhanced the course. The only drawback is incorporating the four one-hour videotapes into the course framework. The book helps the students understand some basic concepts that they may miss by just watching the tapes.

The proposal/interview project is an essential part of this course. A detailed scenario should be established prior to starting the project. We have found that by constructing a full set of project parameters, including budget, time frame, and quality constraints, both "partners" are able to give the students nearly the same information.

The students are normally anxious for specific models for their proposals and presentations. They want to know exactly what to do. It is important that they get enough information to prepare for these areas, but not enough to be able to copy. I have found that previous student propo­sals shouldn't be used as examples, as the students will limit the creativity of their proposals to that of the model student proposal.

The obvious problem with this course is the amount of time required by the professors for the interviews and presenta­tions. There probably is some compromise possible in this area, but we feel that this intensive involvement is necessary to achieve the desired results. We have the advantage of enrollment limited to 25 students in this course, and we conduct the course only once per year.

The course is applicable for some interdisciplinary use with architectural and engineering students. This could be done at an undergraduate or graduate level. This interdisciplinary use of the course would require some manipulation of course material to meet the students' knowledge and abilities.

This course has met our goals of broadening student perspectives of project delivery systems and applicable management techniques, making the student aware of the proposal/interview marketing system, and enhancing the students' communication skills. The students demonstrate more personal confidence after completing this course. They seem to have more success with employment interviews. Potential employers are quite interested in the students' skills and knowledge acquired in this course. We feel that this course helps prepare the students for the construction systems of the future, rather than the traditional low-bid systems of the past.