Procurement and Measurement of Industrial Engineering Works

At the end of this course, students should be able to: 1. Gain an awareness and understanding of the various types of industrial engineering projects; 2. Gain an understanding of the peculiarity of industrial engineering works; 3. Develop the knowledge and understanding of the procurement methods for securing industrial engineering projects; 4. Acquire the knowledge and understanding of the applicable standard methods for measurement of industrial engineering works; 5. Demonstrate the knowledge and understanding of the technology and construction process involved in Oil and gas; Electrical and Solar Power generation, telecommunication, Mining and Quarrying, among others; and 6. Develop the knowledge and skills for measurement and bill production for different types of industrial engineering works.

Definition and scope of industrial engineering works; procurement methods of industrial engineering contracts: Joint venture/management contracting/ turnkey; PPP/PFI; Contractor-led procurement. Financing of industrial engineering works: Feasibility studies, Letter of credits, technological licensing and patents. Documentation of industrial engineering contracts. Introduction to Standard Methods of Measurement for Industrial Engineering Construction (SMMIEC). Introduction to international construction measurement standards; Introduction to the relevant sections of BESMM4R. Measurement and description of industrial engineering works in the following areas: Oil and gas: extraction/production, flow stations and oil pipelines, refinery, distribution (equipment, piping and storage). Power and Telecommunication: power generation – hydro, gas, wind, thermal; power transmission. Power distribution, Sustainable energy - biomass, solar, inverter), telecommunication, landline - analogue and digital modes, mobile telecommunication - control systems, cabling, mast and the likes. Mining and Quarrying: mining (iron ore), steel rolling mill, open cast mining, production - iron furnace, cast iron, alloy, wrought iron, mining (bauxite), aluminium smelting and production plant, mining (limestone), cement production, packaging and distribution associated piping and accessories, quarrying. Agro-allied Factories: canning and bottling plant. Paper and pulp manufacturing plant. Ginnery and textile plant, sugar and salt refineries, fertilizers and processing, food and beverages processing plant. Associated piping and accessories. Pharmaceutical and chemical production factories: chemical and paint manufacturing, pharmaceutical plant, Petrochemical plant. Associated piping and accessories, Electronic and Computer production factories: production plant, Hardware, piping and accessories. Water and Waste Water treatment plant: water treatment plant, and waste water treatment plant, piping and accessories. Production of bill of quantities for the measured works using manual method, the use of MS Excel and dedicated computer software. Site visits, use of construction pictures and video diaries to aid students’ understanding of the sequence of construction works being measured. QTS 503: Advanced Construction Economics (2Units C: LH 30) Learning Outcomes At the end of this course, students should be able to: (Use measurable outcomes. All the points below need to be revised. Presently, they are not tenable) 1. Gain an awareness and understanding of the latest RIBA plan of work and the RICS New Rules of Measurement 2 (NMR2) as applicable to preparing preliminary cost estimates or budgetary estimates for construction projects; 2. Understand theory and principles of cost control, total cost appraisal, Life Cycle Costing (LCC) and whole life costing (WLC); 3. Develop the knowledge and skill for preparing preliminary estimate, cost plan and cost control; 4. Develop the knowledge and skill for identifying, costing and managing risk in construction; and 5. Develop the knowledge and skill required for practical value management and value engineering. Course Contents Preliminary estimate, using the RICS new rules of measurement 2 (NMR2); cost planning during feasibility, outline proposals and scheme design stages. Importance of control over expenditure: Cost control during inception, feasibility and outline proposal stages. Cost control during scheme design and detail design stages. Real life project exercises on cost planning and control, leading to contract sum prediction. The concept of cost in use/ whole life costing: present and future payments, time value of money; maintenance and running cost; Life of building and components including effects of errors in prediction. Application of operational research to building procurement. Post contract cost control: project baseline cash flow forecast, post contract cost control using earned value analysis. Risk management in construction: risk identification methods, risk analysis methods (quantitative and qualitative), risk response strategies. Value management & value engineering in construction: definitions and distinction between value management and value engineering; distinction between cost cutting and value management; value management methodology. Value engineering job plan; value management methods: the 40-hr workshop, the charette. Value management techniques: Functional Analysis System Technique (FAST), SMART (Simple Multi-attribute Rating Technique (SMART), brainstorming, value matrices; project intervention and value management opportunity points; critical success factors in value management. Seminar presentation on new trends in construction economics. Introduction to design thinking as problem solving approach that impacts on economy of construction