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Construction Contracting: A Practical Guide to Company Management, 8th Edition by Richard H. Clough, Glenn A. Sears, S. Keoki Sears, Robert O. Segner, Jerald L. Rounds

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Chapter 3Company Organization

3.1 Introduction

The operation and management of a construction company involves a large number of separate and diverse activities. Procuring work, preparing cost estimates, negotiating contracts, procuring materials and labor and other resources, planning and scheduling projects, determining construction methods, equipment management, insurance, surety bonds, material control and storage, as well as managing payroll, accounting, documentation and record keeping, cost control, labor relations, safety management and training, supervisor training, and a great many other functions are included in the business of construction contracting. It is the role of the construction contractor to coordinate all of these activities into an effective and profitable plan of action for the operation of the enterprise.

The basic element in this entire process of business management is the contractor's company organization. Top-level management of the construction company will create an organization structure that will facilitate the functioning of these numerous separate functions. It should be noted that the organization is not an end in itself, but rather is a means to achieve the objectives of the company.

In carrying out the necessary actions of its business, the construction contractor must continually cope with complex and shifting organizational problems. The contractor faces the need for devising a general company organization that acts in a support capacity ...

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