Design Institute After Transformation Engineering Company Project Construction Management Research

The main task of Design Institute are engineering design, feasibility study and consultation, while the tasks of Engineering Corporation are extended to project management, design, procurement, construction, commissioning, start-up and even commercial operation (EPC turn-key, whole project process). The number and total income of EPC contracts for Engineering Corporation depends on market and sales. Sometimes no EPC project is under operation, and sometimes many EPC contracts are in operation at the same time and the total EPC project income maybe 0 or maybe billions US dollar. Thus the requirements for human resource are different, especially for project site management. For those Engineering Corporation which developed from Design Institute, engineers at construction management are about five percent of the total staff of Engineering Corporation. How to use the limited human resource to accomplish the construction work of EPC project with systematic and standard management is discussed in this article.The author, Chinese National Class One Registered Structure Engineer and Class One Registered Construction Engineer, has worked as a structure engineer undertaking design work in for several years, as department director for technical management and human resource management for another several years in Design Institute and worked as a project manager in several EPC turn-key project both of China and oversea project in Engineering Corporation. Having accumulated a lot of experiences in the design institutes and engineering corporations, and knows very well about the difference between design institute and engineering corporation. These experiences are used to analyze problems existed and how to solve the problem, how to undertake the construction management for those China Engineering Corporation which was converted from China Design Institute.The core competitive and outsourcing differences of Engineering Corporation developed from Design Institute, Manufacture and Construction Company are compared in this article. Typical organization chart as well as simple small project and complex project organization chart, minimum human resource requirement, responsibility and obligations of key position for project construction management are discussed in this article. For all project, no matter how big or small they are, the content of construction management includes but not limits to quality control, schedule control, cost control, material control, document control, HSE management, scope management, change order and claim management, human resource management government permit and approval. It is pointed out that these construction works should be done by all the departments of Engineering Corporation, not done by construction department only. The matrix management pattern can be used for construction management. Construction management obligations for function departments are listed in the article, and for example, the main obligation of construction division is to set up procedure for construction management and training key-persons for each project. The extent of authorization and procedure of decision making will affect project schedule target achievement. How to set up target and incentive measure to construction management is discussed in this article, and it’s been pointed out that a lot of engineers will be fostered by the construction management of EPC turn-key project.From the author’s point of view, for Engineering Corporation developed from Design Institute, construction management is the obligation of the function department/division; qualified discipline engineers and technical support from the function department are very important; 80% cost control depend on design; flat organization is good for management efficiency; More authorization and fast decision making will benefit project and Engineering Corporation. More detailed work break down and good sub-contract partitions and right sub-contractor selection will reduce the quantity of construction management work. The task of the construction management of Engineering Corporation is coordination. Personal training is important for each specified project management team. Project team including the owner, supplier, and sub-contractor sharing same target and value will make the total project operation more smoothly.This article can be used as references for QSHE management procedure of the revise and improvement of Engineering Corporation; for the design institutes which just begin their EPC project and intend to develop to Engineering Corporation and for engineers and key persons who are undertaking the construction management work.