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Competitive-Bid Contract
Award contract to the “lowest responsible bidder”
What is meant by the term “lowest responsible bidder”?
“lowest responsible bidder”
Lowest bidder whose offer best responds in quality, fitness and capacity to fulfill the
particular requirements of the proposed work and with the necessary qualifications to
complete the job in accordance with the terms of the contract.
In open competitive bidding by public and private owners the bid will go to the
lowest responsible bidder.
Factors affecting “Responsible”
1 – Technical competence and experience
2 – Current financial position
3 – Bonding capacity
4 – Current workload
5 – Past history of claims litigation
6 – Defaults on previous contracts, etc.
Competitively Bid Contracts
Benefits:
1) It yields a low and competitive price.
- This is only theoretically true, since change orders and modifications tend to increase the
contract price
- Some contractors, upon finding a set of poorly defined plans and specifications will
purposely bid low (i.e., zero or negative profit) knowing that many change orders will
be necessary and will yield a handsome profit.
2) All bidders equally treated
- This is important in the public sector where political influence and other pressures could
bias the selection of the contractor
Drawbacks:
1) Plans totaly completed
2) Constrution not started .. Longer time
STIPULATED-SUM (LUMP-SUM) CONTRACTS
Under a Lump Sum or Fixed Price Contract, the contractor agrees to perform the work
specified and described in the contract for a fixed price. Lump-sum includes:
- Direct costs (ex. Labor, equipments, etc.)
- Indirect costs (ex. office supervision, secretarial support, equipment maintenance, etc.)
- Profit
The price of a fixed contract can only be changed upon the execution of a change order.
These types of contracts are appropriate when a clear scope and a defined schedule have been
reviewed and agreed upon.
Progress payments based on percentage complete
Contractors receive monthly payments based on the percent of the total job competed
Advantages:
The owner’s construction costs are more predictable
The owner’s cost will be capped by the contract price, so long as no change orders are
issued and no disputes arise on the project
No need for precise field measurements, since the total budget may not be exceeded
decrease the number of field quantity estimators
Disadvantages
The requirement for the scope of work under the contract to be clearly defined
The requirement to have detailed plans and specifications complete before bidding
and construction can begin
The difficulties involved in changing design or modifying the contract: The flexibility
of this contract form is limited.
The schedule should clearly define the work and the deadlines that must be met
So, it would require additional time and money to clearly define the scope of work
and create a detailed schedule
Summary: Lump sum contract
In a single fixed-price contract, also called a lump sum contract, the contractor agrees
to provide a specified amount of work for a specific sum.
The advantage of this contracting method is that the owner knows before the work
begins what the final cost of the project will be.
This negates the possibility of a fast-tracked project
This essentially allows the bidder to request front money from the owner.
The owner can borrow money with lower i % than the contractor.
Balanced Bid Versus Unbalanced Bid
For Unit-Price Contracts, a balanced bid is one in which each bid is priced to carry its
share of the cost of the work and also its share of the contractor’s profit.
Contractors raise prices on certain items and make corresponding reductions of the
prices on other items, without changing the total amount of the bid.
NEGOTIATED CONTRACTS
The Cost-Plus Contract is a type of a construction contract under which the owner
agrees to pay the complete cost of the materials and labor needed to needed to
build the project along with a fee for the contractor’s overhead and profit.
This contract type is favored where the scope of work is highly uncertain or
indeterminate and the type of labor, material, and equipment needed to build the
project is also uncertain in nature
NEGOTIATED CONTRACTS- Awarding Criteria
In these types of contracts the selection criterion is not the low bid
The owner invites selected contractors to review the project documentation
available at the time of negotiation.
This documentation may be total and complete design documentation or only
concept-level documentation.
Based on the documentation provided, the contractor is invited to present his
qualifications to perform the work and to indicate his projected costs and fee for
completing the work.
The owner evaluates:
- the experience,
- reputation,
- facilities,
- staff available,
- charge rates, and
- fee structures…
…of the various bidders participating.
NEGOTIATED CONTRACTS
Most common forms of contract is “cost plus fee”
Cost = All direct cost for labor, equipment and materials + charges fee
Cost + Percentage Contract
Cost + Fixed Fee Contract
Cost + Fixed Fee with Arrangement for Sharing Any Cost Savings Contract
Cost + Fixed Fee with Guaranteed Maximum Price Contract
Cost plus Fixed Fee with Bonus Contract
Cost plus Fixed Fee with Guaranteed Maximum Price with Bonus Contract
Cost + % of Cost– Compensation is based on a percentage of the cost;
Cost + Fixed Fee – Compensation is based on a fixed sum independent the final
project cost. The owner agrees to reimburse the contractor’s actual costs, regardless
of amount, and in addition pay a negotiated fee independent of the amount of the
actual costs;
Cost + Fixed Fee with Profit Sharing Clause – Compensation is based on a fixed sum
of money. Any cost savings are shared with the buyer and the contractor
Cost + Fixed Fee with GMP – Compensation is based on a fixed sum of money. The
total project cost will not exceed an agreed upper limit ‘Target Value’;
Cost + Fixed Fee with Bonus – Compensation is based on a fixed sum of money. A
bonus is given if the project is finished below budget, ahead of schedule, etc.;
Cost + Fixed Fee with GMP with Bonus –Compensation is based on a fixed sum of
money. The total project cost will not exceed an agreed upper limit and a bonus is
given if the project is finished below budget, ahead of schedule, etc.;
COST-PLUS-FEE CONTRACTS
Contract value is NOT guaranteed
When used?
If the owner needs to complete a project quickly or
When design and drawings are NOT complete.
Risk to owner: Cost can increase.
Owner pays “reimbursable costs” plus a “fee”
“Fee” is usually a percentage of total reimbursable cost (2% to 6%)
Cost + Percent of Cost
Fee = percentage of the total project cost
– Ex: Typical Job
(Cost = $80 million, Fee = 2%)
If cost increases to $100 M, the fee increases by $ *****
Design-Build
In this approach, a single organization is responsible for performing both
design and construction.
Within the design-build organization, parts of the design may be subcontracted
to specialist consultants.
Being responsible for both design and construction, the design-build
contractor carries most of the project risks, and this mean additional cost to
owner.
The owner's role in this approach is minimal and is only to express his or her
objectives and specifications precisely before detailed design is started.
Historically, the design-build approach has been used on large, privately
funded, industrial-sector projects. Recently, however, this approach has begun
to be used on commercial building projects, some publicly funded.
Typical Design/Build Process
(The Four Phases)
DESIGN-BUILD
A CONSORTIUM FORMAT
Each member of consortium is at risk
The members are motivated to avoid disputes
Construction Management Method
Owner appoints a CM organization to manage and coordinate the design and construction
phases of a project using a teamwork approach.
The design may be provided by specialist design firms and in some cases by the CM
organization.
innovative approaches of overlapping design and construction (i.e., fast- tracking) can be
adopted.
CM organization aims at holding a friendly position.
Services offered by CM organization overlap those traditionally performed by the architect,
the engineer, and the contractor.
This may include:
management and programming of design;
cost forecasting and financial arrangements;
preparation of tender documents; tender analysis
and selection of contractors;
selection of methods of construction;
planning and scheduling construction works;
materials procurement and delivery expedition
Two types:
Acency CM (CMa)
CM at risk
Construction Management at-Risk
(Two Separate Contracts for Design & Construction)
Penalty= $20,000/day
3 days of delay
Progress Payments and Retainage
During the construction period, contractor is reimbursed on a periodic basis.
The method of making progress payments is implemented in the contract.
Retainage: Owner retains or holds back a portion of the monies due the contractor,as
an incentive for the contractor to properly complete the project .
Why? Nearing the completion if contractor receives virtually all of bid price, he may
not be motivated to do small close-out jobs.
In contract documents (in General conditions) a statement like below may exist.
In making progress payment there should be retained 10 percent of the estimated
amount until final completion and acceptance of the work.
Progress Reporting
The different forms of contract have different processes for declaring a contract
complete.
At this point:
- retention moneys are reduced,
- performance bonds are released and
- the defects liability period commences.
This is a great financial relief for a contractor.
Acceptance and Final Payment
Final acceptance of the project is important to all parties concerned:
• Contractor- final acceptance means the release of retainage
• Owner - final acceptance means the occupancy of the project,
accomplishment of the scope
A joint inspection on the part of the owner’s representative and the contractor is
made
• The owner’s representative notes deficiencies that should be corrected
(punch list)
• The contractor makes note of the deficiencies.
Similar procedure is used between the prime contractor and the subcontractors.
Partial Delivery
Where the contract allows for it, the contractor is entitled to or required to hand
over sections of the project before the whole project is completed.
Handing over these sections means that the owner is able to utilise that portion of
the works before the whole project is completed and the contractor is thereafter not
liable for that portion of the works
The risk of damage to the works also passes to the employer upon completion.
Early completion
If the contractor is very efficient, and there are no problems experienced on site,
then the contractor will be free to start a new project much earlier.
Construction is a complex business to operate and there are many different activities
that need to be managed at any one time. It is not possible to remember what
happened at what time, and who did it, and why. Record keeping is essential to
ensure that events can be recalled at a later stage.
There are several main types of records that need to be kept including:
1) Site diary.
2) Drawing register.
3) Written notices, correspondence and site instructions.
4) Site photographs.
5) Contractual documents.
6) Occupational health and safety documents.
Site diary
a) Day.
b) Date.
c) Rainfall measured.
d) Personnel schedule.
e) Equipment schedule.
i) Drawings received.
Written notices are similar to correspondence but differ in the fact that they are
written in accordance with a specific requirement in terms of the general conditions
of contract and usually make reference to a particular clause.
Site instructions are often given verbally on site in order not to delay the work. These
must be confirmed in writing as soon as practically possible, so that they are placed
on record and become binding in terms of the contract
Site photographs
Site photographs are invaluable in recording conditions at a particular date and time.
“A picture tells the whole story”
However, it is important to capture additional information about the picture as well.
a) Date and time.
b) Location.
c) Reason for taking the photograph.
d) Name of photographer.
e) The names of relevant people included in the photograph.
f) The names of the subcontractors included in the photograph.
It is important that the photographs are correctly coded and filed with the appropriate
description relating to each photograph
Other Issues during Construction
§ Check the exact provisions of the Contract with regard to the settlement of
disputes and costs incurred (in terms of time, money and resources);
Check if the contract management team has consistently and correctly enforced the
conditions of contract;
§ Duly document any deviations from the specifications and conditions of contract.
ü Site Daily diary
ü Site minutes & Files
ü Instruction Books
ü Contract close-out.
Theme: Construction project
Planning and Scheduling
Project Planning
Planning is a general term that sets a clear road map that should be followed to
reach a destination.
Planning involves the breakdown of the project into definable, measurable, and
Planning - Breakdown of project into work items (activities), define and describe
activities to be performed.
The bid package consisting of the plans and specifications establishes the scope of
work to be performed.
To be properly managed, the scope of work must be broken into components that
define work elements
It involves:
- the choice of technology,
- the definition of work tasks,
- the estimation of the required resources and durations for individual tasks, and
- the identification of any interactions among the different work tasks.
Choice of Technology and Construction Method
Choices of appropriate technology and methods for construction are often ill-
structured.
For example: A decision whether to pump or to transport concrete in buckets will
directly affect the cost and duration of tasks involved in building construction.
A good plan is the basis for developing the budget and the schedule for work.
A planner should know the different categories of work and be familiar with the
terminology and knowledge used in general practice.
Also, the planning team should seek the opinion of experts including actual
construction experience.
This helps produce a realistic plan and avoids problems later on site.
Adopt a primary emphasis on either cost control or on schedule control.
Forming a construction plan is a highly challenging task.
Most people, if you describe a train of events to them, will tell you what the result
would be. They can put those events together in their minds, and argue from them that
something will come to pass. There are few people, however, who, if you told them a
result, would be able to evolve themselves what the steps were which led up to that result.
This power is what I mean when I talk of reasoning backward
Cost (or expense) oriented planning: projects are divided into expense categories
with associated costs. A distinction is made between costs incurred directly in the
performance of an activity and indirectly for the accomplishment of the project.
For example, borrowing expenses for project financing and overhead items
are commonly treated as indirect costs.
Time (or schedule) oriented planning: projects are divided into work activities over
time. In this case, the planner insures that the proper precedence among activities
are maintained and that efficient scheduling of the available resources prevails.
Most complex projects require consideration of both cost and time. In these cases,
the integration of schedule and budget information is a major concern.
Importance of Simulation
In forming a construction plan, a useful approach is to simulate the construction
process either in the imagination of the planner or with a formal computer based
simulation technique.
By observing the result, comparisons among different plans or problems with the
existing plan can be identified.
For example: A decision to use a particular piece of equipment for an operation immediately
leads to the question of whether or not there is sufficient access space for the equipment.
Answer: 3D geometric models in a computer aided design (CAD) system may be helpful in
simulating space requirements for operations and for identifying any interferences.
Project Planning Steps
The following steps may be used as a guideline, or checklist to develop a project plan:
1. Define the scope of work,
2. Generate the work breakdown structure (WBS) to produce a complete list of
activities.
3. Develop the organization breakdown structure (OBS) and link it with work
breakdown structure or identify responsibilities.
4. Determine the relationship between activities.
5. Estimate activities time duration, cost expenditure, and resource requirement.
Develop the project network.
Developing the Work Breakdown Structure (WBS)
The full scope of work for the project is placed at the top of the diagram, and then
sub-divided smaller elements of work at each lower level of the breakdown.
At the lowest level of the WBS the elements of work is called a work package.
Guidelines:
For example
level 1- represents the full scope of work for the house
level 2- the project is sub-divided into its three main trades,
level 3- each trade is subdivided
to specific work packages.
A project code system provides the framework for project planning and control in which
each work package in a WBS is given a unique code that is used in project planning and
control.
The coding system provides a comprehensive checklist of all items of work that can be
found in a specific type of construction.
Also, it provides uniformity, transfer & comparison of information among projects
An example of this coding system is the Master Format, which was developed through a
joint effort of 8 industry & professional associations.
The Master format is divided into 16 divisions as follows:
1) General Requirements.
2) Site work.
3) Concrete.
4) Masonry.
5) Metals.
6) Woods & Plastics.
7) Thermal & Moisture Protection.
8) Doors & Windows.
9) Finishes.
10) Specialties.
11) Equipment
12) Furnishings.
13) Special Construction.
14) Conveying Systems.
15) Mechanical.
16) Electrical.
Project Activities
The building block (the smallest unit) of a WBS is the activity, which is a unique unit of the
project that has a specified duration.
An activity is defined as any function or decision in the project that: consumes time,
resources, and cost
Activities are classified to three types:
1. Production activities: activities that involve the use of resources such as labor,
equipment, material, or subcontractor.
This type of activities can be easily identified by reading the project’s drawings and
specifications.
Examples are: excavation, formwork, reinforcement, concreting, etc.
Each production activity can have a certain quantity of work, resource needs, costs, and
duration.
2. Procurement activities: activities that specify the time for procuring materials or
equipment that are needed for a production activity. Examples are: brick procurement, etc.
3. Management activities: activities that are related to management decisions such as
approvals, vacations, etc.
An activity can be as small as “steel fixing of first floor columns” or as large as
“construct first floor columns”.
This level of details depends on the purpose of preparing the project plan.
For Example: In the pre construction stages, less detailed activities can be utilized, however,
in the construction stages, detailed activities are required.
Accordingly, level of details depends on: planning stage, size of the project, complexity of
the work, management expertise.
Determining Sequence of Work Packages
In order to identify the relationships among activities, the planning team needs to answer
the following questions for each activity in the project:
- Which activities must be finished before the current one can start?
- What activity(ies) may be constructed concurrently with the current one?
- What activity(ies) must follow the current one?
Consider the simple construction of concrete footings:
Activities are:
A. Layout foundations
B. Dig Foundations
C. Place formworks
D. Place concrete
E. Obtain steel reinforcement
F. Cut and bend steel reinforcement
G. Place steel reinforcement
H. Obtain concrete
Scheduling Logic
• In order to develop a schedule, the logical sequence or scheduling logic which relates
the various activities to one another must be developed.
• In order to gain a better understanding of the role played by sequencing in
developing a schedule:
Consider a simple pier made up of two lines of piles with connecting headers and simply
supported deck slab.
Activity Relationships
A relationship between two activities can be the result of physical restrictions or of a
deliberate management decision.
• Physical relationships: The relations among the activities in each of the two legs
• Strategic relationships: no physical reason to start with the east side of the structure. The
relationship reflects a management choice.
• Safety: Some relationships result from the need to guarantee the safety of the
construction personnel.
• Other considerations: A traditional rule.. all
required resources will be available.
Determining Sequence of Work Packages
In arranging WP sequence for time control, the criteria of
(1) Location
(2) Material
(3) Method and
(4) Required resources.
Consideration must be given to other time consuming activities
a) Administrative actions (inspections, permit issuance, noiseconstraints),
b) Material deliveries
c) Certain special activities (like curing of concrete, moisture content measures for soil
compaction, etc).
Types of activities relationships
Four types of relationships among activities can be defined as described and illustrated
below
Typically, relationships are defined from the predecessor to the successor activity.
a) Finish to start (FS). The successor activity can begin only when the current
activity completes.
b) Finish to finish (FF). The finish of the successor activity depends on the finish of
the current activity.
c) Start to start (SS). The start of the successor activity depends on the start of the
current activity.
d) Start to finish (SF). The successor activity cannot finish until the current activity
starts.
Drawing Project Network
Networks
Network: A model consisting of nodes and links connecting between these nodes
PDM -- Precedence Diagram
PDM Activities comprised of:
Activity description
Node representing the activity
Arrow representing relationship / dependency
Point indicating direction of relationship / dependency
LAG time
Sometimes, traditional FS relationships are inefficient to model the relation between
two activities.
For example, in any project involving cast-in-place concrete, the concrete is poured
and then allowed to cure for a number of days before its formwork can be stripped.
SS relationships are used when a successor activity must begin after at least a LAG
number of days after the start of the predecessor activity.
Example: The first segment of a long pipe can be laid before its trench is completely
finished. All that is required is that the laying begins when an appropriate length of
trench is available.
This type of relationship signifies that the successor activity must be finished after at
least the number of days indicated in the LAG between the two activities.
Same example: Suppose that the trenching operation takes 7 days and the pipe laying must
finish at least 3 days after the excavation has been completed
Scheduling Software
Primavera
MS Project
Why Construction scheduling ?
One of the first question an owner or project manager wants answered is “ when
can the project be completed” ?
Schedules start date determines when goods and services need to be brought to the
job site, when a work force needs to be mobilized and when equipment rental
begins.
Example: A large crane can be rented from more than $2500 per
week. So, if the duration of the project is not figured closely
contractors can quickly consume in rental.
Planning Versus Scheduling
A plan shows the activities and their logic relationships. The activities in a plan do
not have specific start and end dates.
A schedule establishes the specific start and end dates for the activities. It also
establishes the total project duration. A schedule determines what resources are
needed when, for how long, for which activity.
Scheduling Methods
Bar charts
For instance, owner of a $500 million high rise is interested in when the project is
due for completion. Bar charts can provide this type of information.
Field superintendent or construction manager is responsible for actual details of the project.
(e.g. delivery of key materials, dry walls). CPM can provide the necessary details
Steps to develop a schedule
What are the steps required to develop a project schedule?
1) Breaking down the scope of the work into manageable portions, namely its
activities. (Discussed previously)
4) Finding the earliest and latest possible times for the execution of each activity
(Network Analysis).
5) Looking up the project's critical sequence of activities and the leeway that
activities not included in this sequence can have.
This shows the "normal" productivity for a crew fabricating and placing footing formwork.
Example: Estimating Duration
Activity: “Form Continuous Wall Footings”. 6,000 square feet of contact area (SFCA) of
continuous wall footing formwork. Estimate this activity's duration!
Use R. S. Mean's Building Construction Costs data and assume three uses for each plywood
section,
So, one carpentry crew can fabricate 470 SFCA per day (production Rate).
Using one crew, duration is 6,000/470 = 12.76 days.
Using two crews, duration is halved to 12.76/2 = 6.39 = 7 days.
The duration is calculated by dividing the quantity of work by the daily production
rate.
For example: assume a daily production rate of 500 cyd per day with 8000 for
completing the activity
Variance Calculation
An activity’s completion time variance is:
s2 = ((tb-ta)/6)2
ta = optimistic, tb = pessimistic
If the variance of each activity on critical path is summed, that value is assumed to be the
variance of the normal distribution of the entire project duration values.
Questions Answered by PERT
As a summary:
• Completion date?
• On schedule? Within budget?
• Probability of completing by ...?
• Critical activities?
• Enough resources available?
• How can the project be finished early at the least cost?
Used to obtain probability of project completion!
Expected project time (T)
Sum of critical path activity times, t
Project variance (V)
Sum of critical path activity variances, v
Normal Distribution Standardized Normal Distribution
Calculation of expected duration, variance for each activity, the standard deviation
“What is the probability that the project can be completed in N days?”
What is the probability that the project can be completed in 19 days? (see fig. 8.3,
and example
For instance for Activity 7
Example 1
Benefits of PERT
Useful at many stages of project management
Mathematically simple
Use graphical displays
Give critical path & slack time
Provide project documentation
Useful in monitoring costs
Limitations of PERT
Clearly defined, independent, & stable activities
Specified precedence relationships
Activity times (PERT) follow
beta distribution
Subjective time estimates
Over emphasis on critical path
D J
H
A E
I
C F
Start Finish
K
B G
Determining the Critical Path
A critical path is a path of activities, from the Start node to Finish node, with
0 slack times.
Critical Path: A–C– F– I– K
The project completion time equals the maximum of the activities’ earliest
finish times.
Project Completion Time: 23 hours
Probability the project will be completed within 24 hrs
s2 = s2A + s2C + s2F + s2I + s2K
= 4/9 + 0 + 1/9 + 1 + 4/9 = 2
s = 1.414
z = (24 - 23)/s = (24-23)/1.414 = .71
From the Standard Normal Distribution table:
P(z < 0.71) = 0.5 + .2612 = 0.7612
A software project has an expected completion time of 30 weeks, with a standard deviation
of 6 weeks.
What is the probability of finishing the project in 40 weeks or less?
X T 40 30
Z 1.67
6
From Standard Normal Distribution Table,
Probability = 0.95254 --- 95,25%
Quality Assurance Systems
The Construction Quality Assurance (CQA) Plan:
introduces personnel,
defines responsibilities, and
describes the quality assurance (QA) program, such as inspections, testing, record
keeping, and corrective action for construction of the specific project
The objective in developing and implementing the CQA Plan is to define the management
system that will control and document:
The quality assurance procedures to be used during the project to assure that the
techniques, materials, and equipment meet design specifications;
The integration of quality assurance inspections and corrective measures into the
project documentation; and
The framework for communicating the quality assurance procedures and
requirements to the construction project personnel
CQA Plan Distribution
The CQA Plan, as well as other construction documents, is required reading for all
construction personnel participating in the work effort.
A copy of the CQA Plan will be provided to all field personnel.
Construction subcontractors will be required to comply with the procedures
documented in the CQA Plan in order to ensure the quality and effectiveness of the
construction work.
CQA Plan Revisions
If revisions are needed, they should be made through addenda added to the CQA
Plan,
Such changes will be distributed to ensure that all parties holding a controlled copy
of the CQA Plan will receive the revisions/addenda.
CQA PLAN FORMAT
CQA Plan has been organized to outline the personnel and procedures that will be utilized to
maintain work quality during the project.
This information has been organized as follows:
Section 2 – Background and Scope
Section 3 – Quality Management Organizational Structure
Section 4 – Definable Features of Work
Section 5 – Inspections and Verification Activities
Section 6 – Non-Conformance and Construction Deficiencies
Section 7 – Sampling Requirements
CQA PLAN FORMAT
Section 8 – Waste Disposal
Section 9 – Documentation
Additional plans pertinent to construction quality are summarized below:
Health and Safety Plan (HASP)
Site Management Plan (SMP)
Construction Schedule
Treatment System Performance Evaluation Test Plan
Bid Package Documents
Bid documents are an important indicator of party intentions and expectations. Bid
proposals submitted by contractors should be very complete, and include guidance as to
how everything from weather to subcontractors can potentially impact on a project and a
bid submittal.
Technical Specifications
Define the qualitative requirements for products, materials, and workmanship upon
which the contract is based
SPECIFY: DESCRIBE OR DEFINE IN DETAIL
This protection is typically in the form of offsetting or covering the damage involved.
So, a bond involves a relationship between three parties; the principal, the obligee
and the surety.
PERFORMANCE BOND
Common rate is 1% (or €10 per €1000) on first €200 000 of contract cost.
Based on these reports, the contractor’s bonding capacity can be determined. This is
calculated as a multiple of the net quick assets as reflected in the company balance
sheet.
Determining what the project will include (also called the scope of
the project), when the project can begin and must end (the schedule),
public
private
A public agency works for the benefit of the citizens, the general public.
Examples of public projects:, a highway, a University, etc.
The owner enters into separate contract with Architect and contractor.
The contractor is entity that enters into a contract with the owner to construct the
project
for the interpretation of the contract documents and the physical construction
of the project rests with the construction contractor
In most cases the prime contractor divides the work among many specialty
contractors called subcontractors.
Subcontractors: do the physical work.
Electrical works
Mechanical works
Steel erection
Drywall and painting
Construction Managers:
The company tends to subcontract 100% of the project work.
The company prefers to be involved in both design and construction process.
The company brings the construction expertise to the design process.
Labor Unions:
The purpose is to improve the lives of their members.
They are usually formed around crafts and trades.
Carpenters’ union
Brickmasons’ union
Insurance Companies:
They:
Provide bid bonds, performance and payment bonds.
Service the liability and property insurance needs of contractors.
Banks:
They provide:
Working capital to contractors.
Both short-term and long-term financing to the project owners.
Suppliers:
They assist:
Designers in material and equipment selection.
Contractors in preparing their bids, shop drawings, fabricating items.
Permitting Agencies and Building Authorities:
They represent the interest of public safety:
They administer publicly funded construction projects.
They ensure private construction projects comply with zoning laws and building
codes.
Brickmasons, Blockmasons and Stonemasons. Their work varies in complexity, from
laying a simple masonry walkway to installing an ornate exterior on a high-rise
building.
Carpenters. They cut, fit and assemble wood and other materials for the
construction of buildings, highways, bridges, docks, industrials plants, and many
other structures.
Cement Masons and Concrete Finishers. They place and finish concrete, fabricate
concrete beams, columns and panels Construction Equipment Operators. They
operate machines used to move construction materials, earth, and rock, and to apply
asphalt and concrete to roads and other structures.
Construction Laborers. They perform a wide range of physically demanding tasks
involving building and highway construction, tunnel and shaft excavation, hazardous
waste removal, and demolition.
Electricians. They install, connect, test, and maintain electrical systems for a variety
of purposes, including climate control, security and communications.
Glaziers. They are responsible for selecting, cutting, installing, replacing, and
removing all types of glass.
Painters. They apply paint, strain, varnish, and other finishes to buildings and other
structures
Pipelayers, Plumbers.
Pipelayers lay clay, concrete, plastic, or cast-iron pipes for drains, sewers, water mains, and
oil or gas lines.
Plumbers install and repair the water, waste disposal, drainage and gas systems in homes
and commercial and industrial buildings.
Sheet Metal Workers. They install and maintain air-conditioning, heating,
ventilation, and pollution control duct systems; siding; rain gutters; downspouts;
skylights; restaurant equipment; outdoor signs, and many other products made from
metal sheets.
Structural and Reinforcing Iron and Metalworkers. They fabricate, assemble and
install reinforcement steel bars in R/C structures (foundations, columns, beams,
slabs…), structural elements (columns, beams, joists…) in steel structures, and other
structural elements such as, stairways, window frames, etc.
Project Management Tools and Techniques
• Much of the knowledge needed to manage projects is unique to the discipline of
project management
• General management encompasses planning, organizing, staffing, executing, and
controlling
• It also includes knowledge of law, strategic planning, organizational behavior,
financial forecasting, and human resource management, etc.
Management Levels of Construction
Four levels
1 – Organizational Level: Legal & business structure, various areas of management, and
communication with field managers
2 – Project Level : Project activities, project cost, and resource scheduling
3 – Operation Level: Construction technology (How construction will be performed)
4 –Task: Activity breakdown (Task assignment to work, crews)
INTRODUCTION
What is the ASCE approach to planning?
The process of developing and formulating a course action to be taken in the future.
Planning include, but not limited to, the following:
- Transportation
- Air Quality
- Solid Waste
- Site
- Project
- Health Services
- Water Quality
- Recreational Facilities, etc.
The planning functions are asserted as:
- Program planning,
- Project planning and
- Activity planning
DEFINITIONS
Planning
Systematic identification of program and project tasks, task schedules, and
resources required for task accomplishment.
Program Planning
A process to develop and select the best course of action for fulfilling goals and
objectives defined to resolve problems or needs.
Project Planning
A process to develop and select the best model for accomplishing a specific
project`s objectives.
Activity Planning
A process to develop and select the best methods for accomplishing the
objectives of a particular activity. The results of activity planning should be
resources (or crew sizes), costs, and activity durations.
Project Scheduling
A process to develop scheduling data and a final schedule based on selected
network model and the operational plan for accomplishing each activity.
Project Control Systems
The report and procedures used in control of time, resources, money, and
quality of a project.
Constraints
Those factors that limit the ability of the planner to select the optimal
alternative with respect to primary decision variable, usually economics.
Constraints may be physical, technological, economic, social, ecological, or
political.
Stakeholders
Those individuals and organizations that have a strong interest in the planning
decisions.
General Public
Many public planning processes involve a ”public interest review” to determine
if the project is in “the public interest”. The general public is the population
affected by the outcome of any planning decision.
Constrains
There are constraints that must be considered in the planning process.