Construction Project Management

Construction Industry Authority of the Philippines (CIAP) – created on 28 November 1980

by virtue of Presidential Decree (PD) 1746 to promote, accelerate, and regulate the growth and
development of the construction industry.

1.) Philippine Contractors Accreditation Board (PCAB) – assume the functions of the
abolished Philippine Licensing Board for contractors under RA 4566 (Contractors
License Law).
o As of July 24, 2017, there are 9760 Contractor’s Licences (80.8% were renewing
licences, while the remaining 19.2% were new licenses)
2.) Philippine Overseas Construction Board (POCB) – formulate policies, plans,
programs, and strategies for developing the Philippine overseas construction industry.
3.) Philippine Domestic Construction Board (PDCB) – formulate guidelines and
adjudicate disputes arising from public construction project.
4.) Construction Manpower Development Foundation (CMDF) – formulate an overall
construction manpower development plan and strategies, and develop and implement
manpower training programs.

Construction Project

- Construction projects are intricate, time-consuming undertakings. The total development

of a project normally consists of several phases requiring a diverse range of specialized
services.
- Each Construction Project is unique.
- There are two construction methods namely, (1) Top-down construction – builds the
permanent structure members of the basement along with the excavation from the top to
the bottom; (2) Bottom-up construction – the technique of constructing underground
structures starting from the bottom and working upwards.
- The construction process is subject to the influence of highly variable and sometimes
upredictable factors. These complexities involve are subsoil codition, surface
topography, weather, transportation, material supply, and labor conditions.

Stages of a Construction Project:

1.) Planning and Definition

- Project definition involves establishing broad project characteristics, such as
location, performance criteria, size, configuration, layout, equipment, services,
and other owner requirements needed to establish the general aspects of the
project.
- Conceptual planning stops short of detailed design, although a considerable
amount of preliminary architectural or engineering work may be required.
2.) Design
- The design phase involves the architectural and engineering design of the entire
project.
3.) Procurement and Construction
- Procurement refers to the ordering, expediting, and delivering of key project
equipment and materials, especially those that may involve long delivery periods.

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- Construction is the process of physically erecting the project and putting the
materials and equipment into place, and this involves providing the manpower,
construction equipment, materials, supplies, supervision, and management
necessary to accomplish the work.

People Involved in a Construction Project:

A.) Owner – the instigating party that gets the project financed, designed, and built.
a. Public owners
i. Public projects are paid for by appropriations, bonds, or other forms of
financing and are built to perform a defined public function.
b. Private owners may be individuals, partnerships, corporations, or various
combinations thereof. Most private owners have the structure built for their own
use: business, habitation, or otherwise.
c. Public-Private owners – private sector funds public projects, then later on return
the ownership to the public.
B.) Architect-Engineer – also known as the design professional, is the party or firm that
designs the project.
C.) Prime Contractor – also known as a general contractor, is the firm that is in prime
contract with the owner for the construction of a project, either in its entirety or for some
designated portion thereof.
a. Subcontracting. When the prime contractor engages a specialty firm to
accomplish a particular portion of the project, the two parties enter into a contract
called subcontract.

Project Awarding System:

1.) Competitive Bidding

- The owner selects a prime contractor on the basis of competitive bidding,
negotiation, or some combination of the two.
- When bidding a project, the contractor estimates how much the structure will cost
using the architect-engineer’s drawings and specifications as a basis for the
calculations. The contractor then adds a reasonable profit to this cost and
guarantees to do the entire job for the stated price.
- Bid prices quoted by the bidding contractors most often constitute the principal
basis for selection of the successful contractor, with the low bidder usually
receiving the contract award.
2.) Negotiated Contracts
- A contract is negotiated between the owner and the chosen contractor. Most
negotiated contracts are of the cost-plus-fee type, a subject that will be
developed more fully later.
3.) Combined Bidding and Negotiation
- One such process is to have a bid where the competing contractors are required
to submit their qualifications along with their bids. The owner then interviews

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those contractors whose proposals appear most favorable and negotiates a

contract with one of them.
4.) Fast Tracking
- Refers to the overlapping accomplishment of project design and construction.
- Early phases of the project are under construction while later stages are still on
the drawing boards.
5.) Fixed-Sum Contract
- A fixed-sum contract requires the contractor to complete a defined package of
work in exchange for a sum of money fixed by the contract. A fixed-sum contract
may be either lump sum or unit price.
- With a lump-sum contract, the contractor agrees to complete a stipulated
package of work in exchange for a single lump sum of money.
- A unit-price contract requires the contractor to perform certain well-defined
items of work in accordance with a schedule of fixed prices for each unit of work
put into place.
6.) Cost-Plus-Fee Contracts
- Cost-plus-fee contracts provide that the owner reimburse the contractor for all
construction costs and pay a fee for its services.

Project Delivery System:

A. Design-Bid-Construct
- Field construction is not begun until the architect-engineer has completed and
finalized the design.
B. Design-Construct
- When the owner contracts with a single firm for both design and construction and
possibly procurement services.
C. Construction Management
- The term construction management is applied to the provision of professional
management services to the owner of a construction project with the objective of
achieving high quality at minimum cost.
- Construction management does not include design or construction services, but
involves management direction and control over defined design and construction
activities.
D. Work-by-Force Account
- The owner may elect to act as its own constructor rather than have the work
done by a professional contractor.
- In such a situation, the owner may accomplish the work with its own forces and
provide the supervision, materials, and equipment itself. Or the owner may
choose to subcontract the entire project, assuming the responsibility of
coordinating and supervising the work of the subcontractors.
E. Turnkey and BOT Contracts
- In a turnkey arrangement, the owner provides the facility design requirements to
the contractor, which designs and constructs the facility under a single contract.

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Upon completion, the key to the project is turned over to the owner and the
contract is closed out.
- In BOT contracts, the contractor designs, constructs, operates, and maintains the
facility for a predetermined concessionary period.
F. Integrated Project Delivery System
- Through BIM (Building Information Modeling), all data for the project go into a
massive database that is shared by all stakeholders in the project, thus all
stakeholders who contribute and use the data become active participants in the
entire project.
- Ties all stakeholders together based on a single contract that is signed by each
stakeholder (owner, designer, contractors, and subcontractors).
G. Speculative Construction
- When owners build structures for sale or lease to other parties, they engage in
what is commonly referred to as speculative construction.
- Most speculative builders function more as land or commercial developers than
as contractors, choosing to subcontract all or most of the actual construction
work.

Construction Management is involved in:

1.) Project Planning and Design – meet the owner’s cost and time boundaries
2.) Project Organization
3.) Design document review
4.) Construction scheduling
5.) Value Engineering – optimizing the entire construction process in terms of cost and
time.
6.) Field Cost Monitoring

Type of Construction Management

A.) With Agency Construction Management

B.) With Construction Management at Risk (danger of Conflict of Interest)

The project manager leads management of a project, he also organizes, plans, schedules, and
controls the field work and is responsible for getting the project completed within the time and
cost limitations. He acts as the focal point for all facets of the project and brings together the
efforts of all organizations contributing to the construction process. Because he has the overall
responsibility, the project manager must have broad authority over all elements of the project.

4 Essentials habits/role of a Project Manager

1.) Practical Construction Experience

- He must have a considerable background of practical construction experience so
that he is thoroughly familiar with the workings and intricacies of the industry.
2.) Specialized Management Techniques

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- The project manager must have, or have available to him, persons with expertise
and experience in the application of specialized management techniques to the
planning, scheduling, and control of construction operations.
3.) Capacity to look into the future
- The project manager must have the capacity to step back from the complex
details of daily construction operations and look into the future, planning for
upcoming activities, checking material deliveries, determining manpower and
training requirements, identifying possible changes to the work, and other future
problem areas.
4.) Appreciation and understanding towards the human factor
- The project manager must have the personality and insight that will enable him to
work harmoniously with other people, often under very strained and trying
circumstances.

Side Kicks of a Project Manager:

1.) Design Manager – ensures that the project is in accordance with the plan especially the
structural part.
2.) Quantity Surveyor – ensures that the project is still on budget.
3.) Scheduler – ensures that the project is on time.
4.) Contract Manager – involve in bidding.

Management refers to planning (scheduling, CPM), organizing (organizational chart),

directing (coordination), controlling (time and cost management), staffing (resource
management) of a business interprise.

Management Procedures:

Management-by-exception

Time Management Cost Management Resource Management

 Management by exception is the practice of examining the financial and operational

results of a business, and only bringing issues to the attention of management if results
represent substantial differences from the budgeted or expected amount.
- After the project has begun, monitoring systems are established that measure
the actual costs and progress of the work at periodic intervals. The reporting
system provides progress information that is measured against the planned
targets. Comparison of field investments and progress with the established plan
quickly reveals exceptions that must receive prompt management attention.

Management Procedures:

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1.) Time management – time monitoring

2.) Cost management – project cost monitoring
3.) Resource management – proper coordination
- a process of advanced recognition of project needs, scheduling and expediting of
the resources required to meet those needs, and adjusting the demands where
necessary.

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