Module 1 The Construction Project

Construction Industry and the Project - Are the organized effort to construct a
building or structure.
4 Growing Industries In The Philippines - One time, time limited set of activities
 Manufacturing calculated to complete a specific
 Tourism output or result with technical
 Services specifications within a defined budget
 Construction and timetable.

Evolution Of Construction What is construction project?

 Ancient Civilization – labor intensive Project - is a single non-repetitive enterprise usually

Egyptian were the first to practice
manpower management.
 Roman Construction Projects
 Industrial Revolution
 Modern Construction Projects
Construction industry – is mainly an urban based
one, concerned with preparation as well as
construction of real estate properties.
-repairing or making certain alterations are also
comes under construction industry.
Categories Of Construction Industry –
involving heavy and civil engineering.
(Large projects such as bridge, road, etc.)
undertaken to achieve planned results within a
time limit and a budget.
- Is any work that happens only once,
has clear beginning and end, and
intended to create a unique product or
knowledge. (PROJECT MANAGEMENT
INSTITUTE/PMI)
Characteristic of a Project that makes it distinct
from routine business work:
- Every project is unique.
- It affects change.
- Project requires expert services.
- There are risks involve in every projects.

General Construction – involve building of Elements of a Project

real estate ones such as residential or 1. Goals/Objectives
commercial real estate assets, etc.
S.M.A.R.T. - way to write management’s goals and
- Involving specially trades. (Involve objectives, according to George T. Doran
building up of specialized items namely, (Management Review, November 1981):
electric related works, works on wood,
etc.) Specific– target a specific area for
improvement.
The construction industry will definitely be a top
Measurable– quantify or at least suggest an
contributor to the country’s growth in the next five
indicator of progress.
tosix years. With the government’s focus on
infrastructure, local and international construction Assignable– specify who will do it.
firms should see a rise in opportunities thanks to
Realistic– state what results can realistically
government projects lined up and ready for be achieved, given available resources.
anyone to take part of.
Time-related– specify when the result(s)
Build, Build, Build – This proposed massive can be achieved.
infrastructure build-up is seen as a crucial
Enlighten
cornerstone to the Duterte administration’s 10-
point socio-economic agenda as it was expected Rewarding
to help solve the country’s lingering concerns, 2. Activities
particularly on unemployment, high prices, and 3. Timeframe
traffic woes. 4. Resources
5. Project Manager

Categories of the Project

 Residential
  Building construction
 Infrastructure & Heavy Equipment
 Industrial
Players in the Construction Cycle - the planning
and the building of each project involved the
collective efforts of many workers, all with different
skills and types of specialized knowledge.
Players in the Construction Cycle
PROJECT
MANAGEMENT
ARCH./ENGR. CONTRACTOR
design
directs
delivery
interpreter
intercessor
implementor
OWNER
dreamer
initiator
Owner – dreamer, initiator;
- participates during the design phase to
set criterion for design, cost, time limits,
to provide decision-making inputs
Architect/Engineer – design, interpret
- May be obligated to make field
visitations for the purpose of observing
materials and completed work to
evaluate their general compliance with
plans, specs, and design and planning
concepts only.
Contractor – deliver, implements
- he guarantees the work and
responsible for the integrity of work
Project Managers - have overall responsibility for
getting a project started; the planning, design and
building, careful monitoring of progress and
bringing the whole thing together by writing a final
report.
Civil engineers - are the technical experts behind
all the buildings and structures we see around us,
so they need to be interested in designing and
building things.
Architect - creates a design that meets the clients’
requirements and takes into account a range of
other issues.
Structural engineer - presents both creative and
technical challenges and requires excellent
problem solving skills and are an integral part of the
design and construction team, with a wealth of
experience and knowledge.
Quantity surveyor - is responsible for the important
paperwork involved with the financial side of a
project. He or she draws up bills, tenders and
contracts, analyses risks, makes valuations, and
gives expert advice to clients and controls costs.
Building control surveyors – work on the planning
and construction phases of a variety of projects
- When buildings have been damaged
by fire or bad weather.
- They inspect any unsafe building and
recommend whether it can be
repaired or should be demolished.
Site engineer/technician - is part of the
construction management team, working
alongside architects, engineers, construction
managers, supervisors, planners, surveyors and
subcontractors. He or she shares responsibility for
site security, health and safety, and the
organization and supervision of people and
materials.
Cost engineer - estimator involves weighing up all
the information about the building work and
deciding exactly how much money it will take to
do what the customer wants. A detailed and
accurate price list for everything needed on a
construction project, big or small is then drawn up.
Clerk of Work
General construction operative (or laborer) - does
many jobs on a building site, from mixing concrete
to digging holes.
- have a wide range of skills and are
needed right across a building site, so
it’s no surprise they are in demand. They
work alongside skilled tradespeople,
helping to build everything from a new
home to a motorway flyover.
Module 2
What is Management?
- process of designing and maintaining
an environment in which individuals,
working together in groups, efficiently
accomplish selected aims (Weihrich,
1993);
- unifying and coordinating activity,
which combines the action of
individuals into meaningful and
 purposeful group endeavor (Mahoney,
1961);
- denotes a social position and authority
involving people and their functions
(Drucker);
- MANAGEMENT means mobilization of
resources in order to attain the
organization’s goals. The function of
which involves getting things done
through other people.
MANAGEMENT PROCESS
• PLANNING - "think" process participated by
top management
• ORGANIZING - the process of arranging
and allocating work, authority and
resources
• STAFFING - to supply people to run a
planned and organized system
• DIRECTING /LEADING - delineation of duties
and responsibilities. Leading involves
directing, influencing, and motivating
employees to perform essential tasks.
• CONTROLLING - the process that checks
performance against standards.
MANAGEMENT SKILLS
• TECHNICAL SKILL - the ability to use the
procedures, techniques, and knowledge of
a specialized field.
• HUMAN SKILL - the ability to work with,
understand, and motivate other people as
individuals or in groups.
• CONCEPTUAL SKILL - the ability to
coordinate and integrate all of an
organization’s interests and activities.
MANAGEMENT LEVEL
• DESIGN SKILL - the ability to solve problems
in different ways that will benefit the
organization.
MANAGEMENT LEVEL
• FIRST-LINE (FIRST LEVEL) MANAGERS -
responsible for the work of operating
employees only.
• MIDDLE MANAGERS - responsible for other
managers and sometimes for some
operating employees; they also report to
more senior managers.
• TOP MANAGERS - responsible for the overall
management of an organization. They
establish the operating policies and guide
the organization’s interactions with its
environment. CEOs, President, VPs.
FUNCTIONAL STRUCTURE
TYPES OF MANAGERS
• FUNCTIONAL MANAGER - responsible for
just one organizational activity, such as
finance or human resources management
• GENERAL MANAGER - the individual
responsible for all functional activities, such
as production, sales, marketing and
finance, for an organization such as
company or a subsidiary.
• PROJECT MANAGEMENT - is a specialized
branch of management, over and above
normal architectural and engineering
services carried out during the pre-design,
design, and construction phase that
contributes to the control of time, cost and
quality.
- It is a means of project delivery
approach, which requires among other
expertise in planning, scheduling, and
control and monitoring of time, cost
and quality.
OTHER RELATED TERMS TO PROJECT
MANAGEMENT (UAP Doc. 204)
• FULL-TIME SUPERVISION AND
CONSTRUCTION MANAGEMENT
• When project were manageable, the
Architect was assisted by a construction
inspector, traditionally called CLERK-OF-
WORKS. As projects become more
complex, there is a need for a
CONSTRUCTION SUPERVISION GROUP.
Functions:
o Quality control
o Evaluation
 o Keep records,
contract docs
CONSTRUCTION MANAGEMENT (C.M.) - is hired for
a more effective cost of control and faster project
implementation scheme.
FUNCTIONS OF C.M.
1. Coordination and supervision
• Recommends the general contractor and
specialty trade contractors.
• Coordinates and supervises all construction
groups.
• Approves methods and
construction.
2. Cost and Time Control
• Programming planning and scheduling of
all construction activities.
• Prepares Pert CPM and Cash Flow.
• Reviews all change orders and payments
prior to approval of owner.
3. Quality control of work and keeping of
records.
THE PROJECT MANAGER
MANPOWER
MATERIALS
MONEY
PROJECT MANAGEMENT PROCESS
Planning, organizing, directing, scheduling, controlling
FINISHED PROJECT
Safe, Cost, Quality, Time
PROJECT MANAGERS’ ROLE IN THE
CONSTRUCTION WORK - to plan, schedule
and monitor the various activities in the
construction work and act as owner’s
consultant on material choice and
construction methods.
PHASES OF PROJECT MANAGEMENT
• PLANNING - relates to what work is to be
done. It involves organizing a project in
a logical order, identifying and defining
the work activities.
reports and • SCHEDULING - relates to when the work
is to be done. It is a timetable, and it
formulates the activities that must be
accomplished to reach a certain goal
or objective. It establish the start,
duration and completion date of a
project or a task. (Gould, et. al.).
• CONTROLLING - ensures that the project
objectives are met, specifically those
objectives of time, cost and
quality/scope. It compares the early
start and early finish schedule, based
on the original plan, with the actual
performance of the project. Controlling
systems of is monitoring or tracking progress of the
project.
STEPS IN PLANNING:
1. Establish objectives:
a. State the objectives (e.g. project start
and finish dates, budgets and technical
results). These will reflect management
derivatives that motivated the project
b. List of interim objectives or milestones.
These are significant events within the
timeframe of the project that must be
realized to meet the management
objectives.
MACHINE
c. Designate responsible personnel or
departments needed to meet the
objectives. These are the groups whose
participation is essential to the
successful execution of the plan. They
need to be selected early in the
planning stage and should be
identified when setting the objectives.
2. Develop a plan:
a. List the jobs or activities that must be
done to complete the project.
b. Develop the Work Breakdown
Structure. Prior to developing WBS, group
the jobs according to the nature of their
work and under the departments
responsible for them.
c. Delineate the jobs by determining
their relationships.
d. Determine which job precede
every other job and those that succeed
every other job.
 e. Determine which jobs can be done
concurrently.
3. Construct the planning diagram:
a. Show the sequence in a planning
diagram. The planning process has
reached an initial completion stage when
a graphic display of the project work items
(jobs) and their interrelationships can be
completed.
4. Identify the timing duration of each activity on
the planning diagram.
5. Identify the costs and labor/personnel
associated with each activity on the planning
diagram.
SCHEDULING PROCEDURE:
- Determine the required time (time
estimate) to complete each project
item.
- Calculate the available time to
complete each project item.
- Compare the required time with the
available time of each project item for
its float.
- Identify the critical activities.
- Determine the float times of the non-
critical items.
- Calculate the duration of the project.
- Validate the time schedule by getting
concurrence from all of the concerned
persons.
- Prepare a bar chart time schedule.
EARLY WARNING SYSTEM PROCEDURE
- Monitoring project activities through
periodic checking of their time
deviations
- Assessing the project activities by
identifying adverse trends and critical
activities
- Resolving any concerns after assessing
the critical activities.
- Communicating status findings to
project participants, vendors, suppliers,
contractors, and management
through phone calls, memos, meetings,
and periodic written reports.
PROJECT STATUS REPORT
- An effective means of communication
used to inform participants of project
performance. Along with a letter of
transmittal, it will include a bar chart
progress schedule based upon
calculated time schedules. This is a
graphic report given to the
management to supplement the
commentary in the status report;
together they assist in a sound
performance appraisal of the project.
The status report highlights the critical
areas and allows objective evaluation
of the problem areas.
- A MILESTONE SCHEDULE REPORT is
another project control expedient that
helps enhance use of the status report.
Milestones are selected events that are
of major importance in achieving
objectives.
DETAILED FUNCTIONS OF PROJECT MANAGER (UAP
Doc.206)
A. PRE-CONSTRUCTION PHASE
- Advises Owner and Architect on
practical consequences of their
decisions and design options.
- Prepares periodic Cost Evaluators and
estimates and advise the A/E and
Owner
- Recommends for early purchase of
equipment and materials that require a
long time for procurement and delivery
- Advises on the pre-packing and
bidding documents for the awarding of
separate construction contracts for the
various systems and trades.
- Considers the type and scope of work
represented by each bid package in
relation to time required for
performance, availability of labor and
materials, community relations and
participate in the schedule of both
design and construction procedures.
B. CONSTRUCTION
- Works with some of the design
operations into and overall CPM or
other network scheduling operation.
- Checks bid packages, drawings and
specifications to eliminating
overlapping jurisdictions among the
separate contractors.
- Reviews all contract to be sure that
someone is responsible for general
requirements on the site
- Conducts pre-bid conferences among
contractors, subcontractors and
manufacturers of systems and sub-
systems to be sure that all bidders
understand the components of the
bidding documents and management
techniques that will be applied.
- Reviews stipulations of the Owner with
the bidders regarding the project
management personnel, services
control authorities, insurance, bonding,
liability and other aspects and
requirements of the project.
CONSTRUCTION PHASE - Advises owner to obtain from qualified
surveyors such as certified records of
- Manages the general coordination
site conditions, elevations, floor levels,
and scheduling of the work.
etc.
- Maintains his own supervisory and
- Insures that contractors maintain a
inspection staff at the jobsite.
current set of records. Working
- Observes the work in progress to assure
drawings and specifications.
compliance w/ drawings & specs
- Set-up a joint inspection of the whole
- Confers with A/E clarification and
project at some specified interval prior
interpretation of the documents.
to completion.
- Obtains and transmits in writing to all
concerned all contract interpretations PROJECT DELIVERY METHOD - the approach to
where any possible disputes may arise. organize the project team so as to manage the
- Set-up on-site lines authority and entire designing and building process.
communication.
- Set-up assurances showing what on-site owner
personnel and organization channels
are made.
- Establishes procedures for
coordination.
- Conducts conferences among
successful bidders. Architect/ Construction
- Revises and estimates as construction engineer organization

proceeds.
- Establishes procedures for processing - A system used by an agency or owner
shop drawings, catalogs and samples for organizing and financing design,
the scheduling of material construction, operations, and
requirements, and prompt cash flow. maintenance services for a structure or
- Sees that each contractor's’ labor and facility by entering into legal
equipment are adequate for work and agreements with one or more
schedule. entities or parties.
- Be aware of safety programs - A system designed to achieve the
developed by each separate satisfactory completion of a
contractor especially those safety construction project from conception
provisions for the overall job as to occupancy.
provided by the general requirements
THE PROJECT DELIVERY SYSTEM
contractor.
- Assists the Owner and the various 1. Traditional - Design-Tender-Build
contractors in the development and
administration of an overall labor OWNER

relations program for the project.

- Updates and keeps current the CPM or
other computerized overall control.
ARCHITECT/ GENERAL
- Maintains records at jobsite and ENGINEER CONTRACTOR

elsewhere.
- Maintains records at jobsite and
elsewhere. SUBCONSUL- CONCRETE MECH’L SUBCON- ELECTRICAL
- Maintains Cost Accounting records TANTS SUBCON-TRACTOR TRACTOR SUBCON-TRACTOR

including change order.

- Keeps accurate progress report.
2. Design-Build
- Reviews and processes all applications
for progress payments.
- Reviews all requests for changes.
- Implements any special client
requirements regarding processing
forms.
- Supply documentation required in the
handling of claims and disputes.
 OWNER
OWNER

ARCHITECT/ GENERAL
DESIGN-BUILD ENGINEER CONTRACTOR
ORGANIZATION

ARCHITECT/
SUBCON- SUBCON-
ENGINEER
SULTANTS TRACTORS
(AFTER NOVATION)

SUBCONSULTANTS SUBCONTRACTORS

3. Construction Management SUB-SUBCON-

TRACTORS
SUBCON-
SULTANTS

a. Agency Construction manager

relationship chart
OWNER

6. Separate Prime Construct

CONSTRUCTION
MANAGER
OWNER
ARCHITECT/ GENERAL
ENGINEER CONTRACTOR

CONSTRUCTION
CONCRETE MECHANICAL ELECTRICAL MANAGER
SUBCONSUL-TANTS
SUBCON-TRACTOR SUBCON-TRACTOR SUBCON-TRACTOR

b. AT-RISK Construction manager ARCHITECT/

CONCRETE MECHANICAL OTHER

relationship chart ENGINEER

SUBCON-
TRACTOR
SUBCON-
TRACTOR
SUBCON-
TRACTOR

SUBCONSUL-
OWNER
TANTS

ARCHITECT/
ENGINEER
CONSTRUCTION
MANAGER
7. Turnkey
8. Build-Own-Operate-Transfer
CONCRETE MECHANICAL ELECTRICAL
9. Joint Venture
10. Force Account
SUBCONSUL-
SUBCON- SUBCON- SUBCON-
TANTS
TRACTOR TRACTOR TRACTOR

PHASES OF CONSTRUCTION CYCLE

4. Project Management

INITIATION
OWNER

PROJECT OPERATION/
MANAGER DESIGN
MAINTENANCE

ARCHITECT/ GENERAL
ENGINEER CONTRACTOR

CONCRETE MECHANICAL
SUBCON- ELECTRICAL
SULTANTS
SUBCON- SUBCON-
SUBCON-TRACTOR IMPLEMENT TENDER
TRACTOR TRACTOR

5. Document and Construct PROJECT INITIATION PHASE - most important

stage in every project. The Initiator of the
project which is the Owner seeks help of
professionals and other authorities for the
generating ideas for the development of the
project.
 - This is the Think Tank or the Planning
phase of the project. Initial concept
paper will be the product of this
activity.
- This stage covers FEASIBILITY STUDY (FS)
and defining the TERMS OF REFERENCE
(TOR).
FEASIBILITY STUDY
- Market Study
- Financial Feasibility Study
- Technical Feasibility Study
- Physical Study
- Social And Environmental Impact
- Legal Feasibility
TERMS OF REFERENCE
- Authority And Financier Of The Project
- End-User Or Target Client
- Objectives
- Scope
- Constraints
- Costs/Budget
- Resources
- Deliverables
- Project Phases And Timescales
- Strategies
- Risks
- Assumptions
- Roles And Responsibilities
Two key things to be accomplished at this stage:
a. identify project brief;
The BRIEF is a statement that
specifies the scope of the
project, objectives to be
achieved, purposes and nature
The BRIEF can be prepared by
the Owner or with the help of
project manager and design
professionals
b. relationship between owner and the
project delivery organization must be
established, with clearly defined roles
and responsibilities
Design and contract development phase
- Design Stage
• Schematic Design
• Design Development
- Contract Development Stage
• Production of drawing documents
• Technical Specifications
• Up-front documents
SCHEMATIC DESIGN
• Production of preliminary drawings and
written reports for Owner’s approval
• the architect will take the lead in
developing design concept with plans,
elevation and sectional views that meet
space and program requirements
• Space analysis, structural analysis, site
analysis
• 35% of the design phase is expended in this
phase
DESIGN DEVELOPMENT
- Most major decisions about the entire
project are resolved
- Development of complete set of design
drawings: architectural, structural,
electrical, plumbing, mechanical, etc.
- Site utility, cost estimate and agency
review efforts are expanded and refined
- Work on construction specifications
- 65% of the phase is accomplished
DRAWINGS - Graphical Presentation Of The
Construction Work Referred To As Design Drawings/
Contract Drawings/ Construction Plans.
GENERAL CONDITIONS /GENERAL PROVISIONS
- Printed documents stipulating the
procedural and the administrative aspects
of the contract.
- Set forth the rights and the responsibilities of
the Owner, Contractor, Surety, Design
Professionals
- Requirements governing the various
parties’ business and legal relationships
- Note that provisions relate to the
relationships among parties, legal and
management issues attendant to the
construction contract but not to the
technical matters related to design
SPECIAL CONDITIONS
- Instructions which may be issued prior to
the bidding to supplement and/or modify
the drawings, specifications, and/or
General Conditions of the contract. Also
known as SPECIAL PROVISIONS,
SUPPLEMENTARY GENERAL CONDITIONS,
PARTICULAR CONDITIONS, w/c covers
project specific matters
- Among the SC are: name and address of
the principal, type of contract, contractor’s
bond, name and qualification of the
engineer, insurance req’ts, completion
date, liquidated damages, etc.
TECHNICAL SPECIFICATIONS
- Written or printed description of work to be
done describing qualities of material and
mode of construction. All technical
 sections in the CSI format are divided into 3
parts:
• GENERAL – scope, related work,
testing and inspection, standards
and certification
• PRODUCTS – requirements for
materials, equipment and
fabrication
• EXECUTION – workmanship
standard
OTHER DOCUMENTS
- Schedule of quantities
- Invitation to tender
- Instruction to bidders
- Tender Form
- Agreement
- Surety Bond forms and insurance
certificates

SELECTION OF CONTRACTOR

1. What Method to Use in the Selection?

2. Tendering
3. Evaluation of Documents
4. Award of Contract

METHODS FOR THE PROCUREMENT OF

INFRASTRUCTURE PROJECTS
• COMPETITIVE or PUBLIC BIDDING is a
method of procurement that is open to any
interested and qualified party.

• NEGOTIATED PROCUREMENT – is the

method of procurement whereby the
Procuring Entity directly negotiates a
contract with legally, technically and
financially capable Contractor.

27 my sheep hear my voice, and I know

them, and they follow me. 28 I give them
eternal life, and they will never perish,
and no one will snatch them out of my

hand. - 10:27-30

The is my light and my

salvation – whom shall I fear?

The is the stronghold of my life – of

whom shall I be afraid? - 27:1, 2