Arba Minch University

institute of technology
Department of Architecture
Project Management for Architects
Course Code: Arch 5362 ECTS: 4 Sem: II
Target Group: G5-Architecture Students

Lecture Note
Prepared By: Melese Becha (MSc.)
Course Description
❖ This course introduces project management, project life cycle, and project appraisal

❖It examines activities related to project planning, scheduling time, and estimating
project cost.

❖It also examines processes for managing project resources; labor, material, and
machinery

❖ It also introduces procurement, contract documents, personnel management, and

site organization
Course Objective
❖ Upon completion of this course, students are expected to be able to;
➢ Identify key actors in the role of construction and parties in the construction industry

➢ Define the function of management, the role of managers, and the level of management in the
construction

➢ understand project management knowledge areas such as integration, scope, time, cost, quality,
human resource, communication, risk and procurement management,

➢ Prepare Work break Structure, schedule, estimate duration and project cost

➢ Understand resource allocation, aggregation and leveling

 Course Content
Chapter 1. Project Management Chapter 4. Construction Management
➢ Overview of project management ➢ Time, Cost and Quality Management
➢ Project life cycle
➢ Construction project ➢ Labor, Material and Machinery Management
Chapter 2. Construction Contracts and Chapter 5. Construction Project Closeout
Procurement ➢ Completing the Work
➢ Project delivery method ➢ Closing out the project
➢ Contract Types Chapter 6. Construction Health and Safety
➢ Contract document ➢ Safety Precaution
➢ Procurement
➢ Site accidents and fatal
Chapter 3. Construction planning, scheduling
and estimating ➢ Construction health
➢ Work Break Structure and project planning Chapter 7. Insurances in the Construction Industry
➢Scheduling Techniques; CMP and PERT ➢ Insurance Policy
➢ Cost Estimation techniques ➢ Construction Insurance checklist
1. Project Management
❖ What is Project Management
➢ Project;
✓ ‘A temporary endeavor undertaken to create a unique product or
service.’…PMI
• Temporary; definite beginning and end with specific objectives to
achieve
• Unique product or service: different owner, designer, contractor, project
location (geography)
✓ “A project is a problem scheduled for solution.” J. M. Juran
• Every project is conducted to solve a company's problem.
• projects deal with both positive and negative kinds of problems.
• For example, developing a new product is a problem, but a positive one,
while an environmental cleanup project deals with a negative kind of
problem.
1. Project Management
➢ Project Management
✓ Application of knowledge, skills, tools and techniques to project activities
to meet project requirements (PMBOK)
✓ accomplished through the application and integration of the project
management processes of initiating, planning, executing, monitoring and
controlling, and closing.
• The first rule of project management is that the people who must do
the work should help plan it.
o Project manager and role of project manager
• “Leadership is the art of getting others to want to do something that
you believe should be done…” Vance Packard
o Leader and leadership
1. Project Management
❑Project management Processes
➢ The planning, scheduling, and control of work is the management or administrative
part of the job.
➢ But without leadership projects tend to just satisfy bare minimum requirements.
➢ With leadership, they can exceed those bare minimums.
a project manager should facilitate planning;
a leader gets people to want to do the work;
➢ The Project manager, along with the project team, is responsible for accomplishing
the project objective,
➢ Managing a project typically includes;
• Identifying requirements
• Adapting the specification, plans, and approach to the different concerns and
expectations of the various stakeholders, and
• Balancing the competing demands for quality, scope, time, and cost.
1. Project Management
❖ Project management processes are iterative because of the progressive
elaboration that occurs throughout the project’s lifecycle.
• PMBOK identifies five processes that are used to manage projects.
1. Initiating;
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
1. Project Management
❖ Project management processes
1. Initiating; Once a decision has been made to do a project, it must be initiated or launched.
• used to authorize work on the project, define the authority, responsibility, and accountability of the project
team, and establish scope boundaries for the job.
2. Planning; One of the major causes of project failures is poor planning.
• Failing to develop a plan means that there can be no actual control over the project.
3. Execution; refers to implementing the project plan
• the work that must be done to create the product of the project
4. Monitoring and Controlling;
• Control is exercised by comparing where project work is to where it is supposed to be, then taking action to
correct for any deviations from target.
• while the plan is being implemented, progress is monitored to ensure that the work is progressing
according to the plan.
• An assessment of quantity and quality of work is made using whatever tools are available for the kind of
work being done.
5. Closing; When all the work has been completed, the closeout phase requires conducting a review of the
project.
• “What did we do well?” and “What do we want to improve next time?”
1. Project Management
➢ The Phases of a Project;
1. Project Management
➢ The Steps in Managing a Project;
✓ Once the project is defined, you can plan how to do the
work.
✓ There are three components to the plan:
• Strategy,
• Tactics, and
• Logistics.
✓ Strategy is the overall approach or “game plan” that will
be followed to do the work.
✓ Implementation Planning
✓ Execution and Control
✓ Close out; When all the work has been completed, the
closeout phase requires that a review of the project be
conducted.
1. Project Management
➢ The Steps in Managing a Project;
1. Define the problem
2. Develop solution options
3. Plan the project
4. Execute the project
5. Monitor and control progress
6. Close the Project
1. Project Management
❑ Project Life cycle;
➢ A collection of generally sequential project phases whose name and
number are determined by the control needs of the organization involved
in the project
➢ provides the basic framework for managing the project, regardless of the
specific work involved
➢ Generic life cycle structure is referred to when communicating with
upper management of other entities less familiar with the details of the
project
➢ the generic lifecycle structure consists;
• Cost and staffing levels
• level of uncertainty and the risk of failing to achieve a project objective
• Ability to influence the final characteristics of the project product
without significantly impacting cost
1. Project Management
❑ Project Life cycle; cost and staff leveling throughout the project lifecycle
1. Project Management
❑ Project Life cycle; stakeholder influence over time
1. Project Management
➢ Knowledge Areas;
• the PMBOK identifies nine knowledge areas that project managers should be familiar with
in order to be considered professionals.
❖Project management knowledge areas;
1. Project integration management
2. Project Scope management
3. Project time management
4. Project cost management
5. Project quality management
6. Project human resource management
7. Project procurement management
8. Project risk management
9. Project communication management
1. Project Management
❖ Project management knowledge areas;
➢ Unique Construction project management knowledge areas
▪ Project safety management
▪ Project financial management
▪ Project environmental management
▪ Project Claim management
❑ Management;
➢ a means of integrating resources (materials, finance, human resources,
information, etc.,) in order to achieve organizational objectives
efficiently and effectively.
➢ the process of coordinating all resources through the four major
functions of planning, organizing, leading, and controlling to achieve
organizational objective.
1. Project Management
❑ Functions of Management;
➢ Planning,
• Predicting the future is easy. It’s knowing what’s going on now that’s hard. —Fritz R.
S. Dressler
➢ Organizing,
• the style of coordination, communication, and management the project team uses
throughout a project lifecycle.
• Organizing includes appropriate coordination between planning and resources
➢ Leading,
• Project leadership is the art and science of steering a team towards the successful
delivery of a project.
• It ensures that together, the team accomplishes more than they could as individuals
because project leadership brings people together to achieve a common goal.
• Leading involves motivating the employees to achieve organizational goals
➢ Controlling
• Control is exercised by comparing where you are to where you are supposed to be so
that corrective action can be taken when there is a deviation.
• No plan, No control
1. Project Management
❑ Level of Management;
➢ It is commonly accepted that there are three management levels,
generically described as top, middle, and lower management.
➢ While there are no universally accepted designations for these three
levels, they are often described as senior management, middle
management and frontline management.
❑The 3 Different Levels of Management
• Administrative, Managerial, or Top Level of Management.
• Executive or Middle Level of Management.
• Supervisory, Operative, or Lower Level of Management
1. Project Management
❑The 3 Different Levels of Management
1. Project Management
❑ Roles of managers and Level of managers ;
➢ The primary responsibility of the project manager is to ensure that all
work is completed on time, within budget and scope, and at the correct
performance level.
➢ Project managers must understand the mission and vision of the
organization first, then they must see how the project they are managing
meshes with the organization’s mission, and they must steer the project
to ensure that the interests of the organization are met.
➢ The essence of project manager; Since you have very little authority
anyway, consider the job to ensure that everyone in the project team has
what they need to do their job well.
• Power and domination
• Authority; We see authority as something granted to us by the organization,
but it turns out that those individuals who take authority for granted usually
get it officially.
1. Project management
❖ Management of the construction project;
❑ the term ‘management’ relates to the planning, organizing,
directing, controlling, and staffing of a business enterprise.
❑ Construction project management, however, applies to a specific project,
the various phases of which usually are accomplished by different
organizations.
❑ Therefore, the management of a construction project is not so much a
process of managing the internal affairs of a single company
❑ techniques for the control of construction cost, time, resources, and
project finance
❑ Construction project management starts at the point at which the
contractor is brought into the project.
1. Project management
❖Construction project management
➢ Construction project is made up of many small components that are
integrated to form a single complex project.
• Construction projects are intricate, time-consuming undertakings.
• consists of several phases requiring a diverse range of specialized
services.
• the typical job passes through successive and distinct stages that
demand input from such disparate areas as
o financial organizations, governmental agencies, engineers, architects,
lawyers, insurance and surety companies, contractors, material
manufacturers and suppliers, and building tradesmen.
1. Project management
❖ A construction project;
➢ construction projects are typified by their complexity and diversity and by
the non-standardized nature of their production.
➢ A construction project proceeds in a rather definite order; the stages of
development that follow are typical.
• identified the need for a new facility
• define the requirements and delineate the budgetary constraints
• Conceptual planning; preliminary architectural or engineering work
• Design phase-the preparation of final working drawings and specifications for
the total construction program
• Procurement and construction; ordering, expediting, and delivering of key
• project equipment and materials, and physically erecting the project and
putting the materials and equipment into place
1. Project Management
❖ A construction project
❑ Key parties involved in a construction project;
❖ Owner-(client)
❖ Architect-Engineer (Consultant)
❖ Contractor (Prime and Sub-contractor)
❑ other stakeholders involved in the construction project
❖ Material suppliers and manufacturers
❖ Banks, insurance, and bonding companies
❖ Regulatory agencies
❖ Attorneys and public officials
❖ End users
1. Project Management
❖ A Framework of construction project Life Cycle;
❑ Pre-project decision phase
❑ Planning and Desing phase
❑ Contractor n phase
❑ Project Mobilization
❑ On site Project operation
❑ Project Closeout and termination

❖ Initial activities include development of a comprehensive

construction budget and a detailed schedule of operations.
1. Project Management
❖ Construction Project Life Cycle
1. Pre-project decision phase;
• Project Delivery system: execution of work
✓ Force account Competitive Biding or negotiation
2. Planning and Design phase;
• Planning
• Feasibility study
• Preliminary design
• Final Design
• Contract document package
1. Project Management
❖ Construction Project Life Cycle
2. Planning and Design phase;-
➢ Planning and Feasibility study;
✓ Consultant selection; primary design professional
✓ Site investigation; soil condition, topography, access, cost and environment
✓ Constructability analysis; evaluation-buildable, cost effective, biddable and
maintainable
✓ Public input/hearing or consultation
✓ Preliminary cost estimate
✓ Financial feasibility
✓ Project recommendation
✓ Funding
✓ Site hand over by the owner/ land acquisition
1. Project Management
❖ Construction Project Life Cycle
2. Planning and Design phase;-
➢ Design stage
✓ Preliminary design
✓ Final design
➢ Contract document package
➢ Drawing (construction or working drawing)
➢ Technical specification (Material and workmanship)
❖ Student Task
➢ Writing Term of Reference-Assignment-1
• Preparation of ToR
➢ Writing Project Appraisal –Assignment-2
• Preparation of project Feasibility Study
1. Project Management
3. Contractor Selection; 5. On Site Project Operation;
• Prequalification • Control and Monitor
• Post qualification o Schedule and time
• Tendering o Cost and budget
• Contract award o Quality
4. Project Mobilization o Work safety
o Environmental concern
• Legal and contractual issues • Resource management
• Permits, building permits o Labor
• Bonding, performance and payment o Machine
• Insurance; property, liability and employee o Material
• Buy out; procurement and subcontracting • Documentation and Communication
• Cost system and budgeting 6. Project Closeout and Termination
• Planning, programming and scheduling • Completing the work
• Organizing work site • Project close outs
2. Construction Contracts and Procurement
❑ Construction Parties; Client, Consultant and Contractor.
❑ The role and responsibilities of parties
▪ The owner: initiation and financing of the project
▪ Consultant: Design professional (Architect-Engineer)- responsible for the
design of facilities.
▪ Contractor: responsible for construction and execution of the work.
❑ Project Delivery System;
▪ Force Account; no contract and no payment system.
• The owner is responsible for the initiation, financing, design and construction of the
facility
▪ Competitive Biding; tendering and payment system for the work execution
• Fixed Price or Lump sum
• Unit price or measured quantity of unit cost
▪ Negotiation; no tendering, payment system for the work execution
• Cost –Plus Fee
• Cost-Plus Fixed Fee
2. Construction Contracts and Procurement
❑Types of Construction Contract;
1. Design Bid Build (DBB)
2. Design and build (DB) or ‘turn-key’ contracts
3. Build Operate and Transfer (BOT)
4. Construction Management
5. Engineer, procure and construct (EPC)
▪ Design Bid Build; segmented or fragmented type of contract.
• Traditionally, field construction is not begun until the architect-
engineer has completed and finalized the design.
• While completing one step before initiating the next may be
acceptable to owners on some projects, it will be unacceptably slow
to other owners.
• the most practiced type of delivery system in the Construction
Industry of Ethiopia
2. Construction Contracts and Procurement
❑Types of Construction Contract;
▪ Design Build or ‘Turn key’:- reduces numbers of procurement processes
engaged in the fragmented process and employ only one procurement process
and a single contractor to provide the entire Construction Implementation
Process.
• a single contractor is responsible to hand over the completed facility and
let the Project owner to turn the key and gets in.
▪ Built-Operate-Transfer contract;
• contract delivery system that promotes Public Private Partnership (PPP) in
which a private company is contracted to finance, design, construct,
operate for a certain period (usually 10 years) and transfer.
2. Construction Contracts and Procurement
❑Pricing arrangement for types of construction contracts
• Lump Sum
• Lump Sum and schedule of rate
• Unit price
• Cost Plus (fixed fee)
• Cost Plus (% of cost)
❑ Lump Sum-payment system and pricing arrangement offers a
total stipulated sum of money.
• There are no individual rate quoted, thus it becomes difficult to
make adjustments in the contract value of any changes are to
be made in the work later on.
2. Construction Contracts and Procurement
❑Pricing arrangement for types of construction contracts
❖ Unit Price or Bill of Quantities
• contractor undertakes the execution of work on an item rate
basis.
• The payment to the contractor is made on the basis of detailed measurements
of different items of work actually done by him.
• Bill of Quantity (BOQ) shows the items present for the construction work with
the associated specification and the estimated quantity with the Unit price for
each of the items.
• most commonly used for all type of engineering works financed by public or
government bodies
• suitable for works
• which can be divided into various items and quantities, under each item, can
be estimated with accuracy.
2. Construction Contracts and Procurement
❑Pricing arrangement for types of construction contracts
❖ Lump Sum and Schedule of Rate;
• provided which regulates the extra amount to be paid or deduced for any additions
or deletions made during the progress of work.
• Measurements of different items of original work are not required but extra items
are required to be measured for payment.
❖ Cost Plus (fixed fee or % of Cost); cost reimbursable
• used in situations that make it difficult or impossible for either the owner or the
contractor to predict their costs during the negotiation, bid, and award process
• Most owners prefer cost plus fixed fee because then the amount of profit the
contractor will earn cannot increase
• Cost plus percent contracts may be fair in situations that are very difficult, or when
• the time to complete the work is not known with any certainty
2. Construction Contracts and Procurement
❑ Contract Document ❑ The main contract documents;
❖ A contract is an agreement whereby two or 1. Invitation to tender,
more persons as between themselves create,
vary or extinguish obligations of a proprietary 2. Instruction to tender,
nature.
❖ Concepts and Basic Terms of Contracts: -
3. Form of tender,
o Offer: - proposal to enter into a contract. 4. The Agreement,
o Acceptance: - 5. Condition of contract( General and
o Performance of Contracts: - Particular),
✓ Performance – fulfilling respective legal
obligations 6. Specification(General and Particular),
o Extra – Contractual Liability: - 7. Bill of Quantities,
❖ Elements of Contracts; 8. Drawings,
• Capacity; matter of personnel, capable
• Consent; offer and acceptance 9. Addenda and
• Object; sufficiency, Legality and possibility 10. Appendix to Tender.
• Form; contract form prescribed by law
2. Construction Contracts and Procurement
❑ Principles of bid evaluation
❖ Information relating the examination, clarification and evaluation of bids shall
not be disclosed to bidders or other persons not officially concerned with this
process until the successful bidder is notified of the award of contract.
❖ The bids are evaluated based on:
• Compliance with the contractual terms and conditions,
• Correction of bid prices,
• Detailed analysis.
❖ bid evaluation process has been updated and refined to reflect the changing
trend of the construction industry. In general it can be considered to have three
components.
✓ General Contractual and Administrative Evaluation,
✓ Technical Evaluation,
✓ Financial Evaluation
2. Construction Contracts and Procurement
❑ Procurement;
• the acquisition of appropriate goods, works and/or services at the best
possible total cost of ownership to meet the needs of the purchaser in
terms of quality, quantity, time, and location
• obtaining goods, works, consultancy or other services through
purchasing, hiring or obtaining by any other contractual means
• intended to promote fair and open competition for their business while
minimizing exposure to fraud and collusion.
• can range from contracting for an entire service to purchasing small
assets such as office equipment
• Procurement differs from purchasing in that purchasing merely reflects
the act of acquisition, while procurement encompasses more elements
of the supply chain (logistics, transportation etc.).
2. Construction Contracts and Procurement
❑ Procurement Process management;
• is the process required to supply equipment, material, service and
other resources needed to carry out a project that satisfy customer
• The procurement management process has four steps
1. Plan
2. Conduct
3. Administer
4. Close procurement
• Construction Industry involves procurement and contract management
systems in order to ensure fair competition and distributions of obligations and
rights among stakeholders
2. Construction Contracts and Procurement
❑ Purpose of Procurement
• helps the Project Owners’ to acquire the five rights (Counterpart, Cost,
Time, Quality and Quantity),
• the Project Financiers’ & Regulators’ to get effective utilization of finance,
and the Project Providers’ by giving impartial & neutral Opportunity for
business.
❑ Project delivery method describes how the participants are organized to
interact, transforming the owner’s project goals and objectives into a
finished facility.
❑ It is often determined during the basic planning phase of the construction
project.
2. Construction Contracts and Procurement
❑ Contract Administration;
➢ The RE, who is typically a member of the CM staff, oversees the contractor
with respect to what work is to be done pursuant to the contract
specifications.
➢ The RE is the Agency’s primary field representative and the contractor’s single
point of contact.
➢ The RE receives/processes contractor RFIs and submittals, has the authority to
accept or reject contractor work based on compliance with the contract
specifications, receives/processes RFCs, and resolves those changes within the
RE’s delegated authority.
➢ All changes that affect the design must be approved by the designer of record.
➢ Working in partnership with the RE is a contract administrator (CA), who is
typically a member of the Agency’s staff.
➢ The CA ensures that the contractor is fulfilling their contractual obligations
and protects the Agency’s rights, expectations, and obligations with respect to
2. Construction Contracts and Procurement
❑Contract Administration;
➢ The CA supports the CM in the prevailing wages, labor, and civil
rights provisions of the contract.
➢ The RE and CA meet with the contractor on a regular basis to
assess the contractor’s progress.
➢ At these meetings the contractor reports on progress, issues
that arise in the field are addressed, and any disputes resolved.
➢ If disputes cannot be resolved between the RE and contractor
they are passed up the project management chain of command
as delineated in the PMP.
3. Construction planning, scheduling and estimating Techniques

❑ Construction Planning

❑Construction Scheduling

❑ Construction Estimation
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
➢ is a fundamental and challenging activity in the management and
execution of construction projects.
➢ 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.
❖ A good construction plan is the basis for developing the budget
and the schedule for work.
❖ Developing the construction plan is a critical task in the
management of construction, even if the plan is not written or
otherwise formally recorded.
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖ Essential aspects of construction planning include;
➢ the generation of required activities,
➢ analysis of the implications of these activities, and
➢ choice among the various alternative means of performing activities.
❖ In developing a construction plan, it is common to adopt a primary emphasis on
either cost control or on schedule control;
➢ construction planning is cost or expense oriented;
• a distinction is made between costs incurred directly in the performance of an activity
and indirectly for the accomplishment of
➢ the project. scheduling of work activities over time is critical and is emphasized in
the planning process,
• the planner insures that the proper precedences among activities are
maintained and that efficient scheduling of the available resources prevails
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖ the functional requirements for
construction planning such as technology
choice, work breakdown, and budgeting;
❖ Construction planning is not an activity
which is restricted to the period after the
award of a contract for construction.
❖ It should be an essential activity during
the facility design.
❖ if problems arise during construction,
replanning is required
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖ Technology choice:
• choices of appropriate technology and methods for construction
• should consider the relative costs, reliabilities, and availability of equipment
• implications of different methods depend upon numerous considerations for which information
• a useful approach is to simulate the construction process either in the imagination of the planner or
with a formal computer based simulation technique.
❖ Work breakdown:
• define the various work tasks that must be accomplished.
• The terms work "tasks" or "activities" are often used interchangeably in construction
plans to refer to specific, defined items of work.
• an activity is any subdivision of project tasks.
❖ Budgeting:
• Execution of an activity requires time and resources, including manpower and
equipment
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖ Work breakdown Structure:
• a well-defined work breakdown structure (WBS) that divides the project into
identifiable parts that can be managed
• WBS is the cornerstone of the project work plan
• It defines the work to be performed, identifies the needed expertise, assists in
selection of the project team, and establishes a base for project scheduling and
control.
• WBS is a graphical display of the project that shows the division of work in a multi-
level system.
• WBS is used from the start to the finish of the project for planning and controlling.
• It is an effective means of defining the whole project, by parts, and providing
effective communication channels for exchange of information that is necessary for
management of the project.
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖WORK PACKAGES:
• A work package provides a detailed description of the work required to
meet project needs and to match the project manager's initial work
plan.
• A work package is divided into three categories: scope, budget, and
schedule.
• A work package is the lowest level in the WBS and establishes the
baseline for project scheduling, tracking, and cost control.
• The work package is extremely important for project management
because it relates the work to be performed to time, cost, and people.
3. Construction planning, scheduling and estimating Techniques
❑ Construction Planning
❖Project planning is the process of identifying all the activities necessary to
successfully complete the project.
❖project planning is a prerequisite to project scheduling because there is no
way to determine the sequence or start and finish dates of activities until
they are identified.
❖ Planning is the first step to project scheduling.
❖Planning is a process and not a discrete activity.
❖As changes occur, additional planning is required to incorporate the changes
into the schedule.
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
➢ Project scheduling is the process of determining the sequential
order of the planned activities, assigning realistic durations to
each activity, and determining the start and finish dates for
each activity.
➢ In order to develop a schedule;
1. Define the activities
2. Sequence the activities in the right order
3. Estimate resources needed
4. Estimate the time needed to complete the task
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
➢ Activity Sequencing Process;
✓ Focus on the order of the work;
✓ Predecessors: activity that comes first
✓ Successors: activity that follows the previous task
✓ Establish Start to Finish (S-F) diagram.
❖ There are two general methods that are commonly used for
scheduling techniques: the bar chart and the Critical Path
Method.
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
❖ technique used for project scheduling;
➢ THE BAR CHART OR GANT CHART
• is a graphical time-scale of the schedule
• developed by Henry L. Gantt during World War I,
• an effective technique for overall project scheduling, but has limited
application for detailed construction work;
o it is difficult to update, does not show interdependences of activities, and
does not integrate costs or resources with the schedule.
o the many interrelationships
o of activities, which are required for construction work, are not defined.
o the bar chart does not integrate costs with the schedule, nor does it provide
resources, such as labor hours,
3. Construction planning, scheduling and estimating Techniques
❑ The Bar Chart Or
Gant Chart;
❑ Sample view
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
❖ technique used for project scheduling;
➢ Critical Path Method (CPM)
• a deterministic approach to scheduling.
• commonly used in the engineering and construction industry.
• developed in 1956 by the DuPont Company
➢ Program Evaluation and Review Technique (PERT),
• probabilistic approach to scheduling
• developed in 1957 by the U.S. Navy
• more commonly used by the manufacturing industry
• it can be used for risk assessment of highly uncertain projects.
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
❖ technique used for project scheduling;
➢ Critical Path Method (CPM)and Program Evaluation and Review
Technique (PERT),
• Both methods are often referred to as a network analysis
system.
• The CPM provides interrelationships of activities and
scheduling of costs and resources.
• it provides more detailed information that is required for
effective project management.
• It also is an effective technique for overall project scheduling
and detailed scheduling of construction
3. Construction planning, scheduling and estimating Techniques
❑Construction Scheduling;
❖ Network Analysis Systems (NAS);
➢ A network analysis system (NAS) provides a comprehensive method for project planning,
scheduling, and controlling.
➢ NAS is a general title for the technique of defining and coordinating work by a graphical
diagram that shows work activities and the interdependences of activities.
• Activity: the performance of a task required to complete the project, such as, design of
foundations, review of design, procure steel contracts, or form concrete columns.
o An activity requires time, cost, or both time and cost.
• Network: A diagram to represent the relationship of activities to complete the project.
o The network may be drawn as either an "arrow diagram" or a "precedence diagram.“
• Duration: the estimated time required to perform an activity.
o The time should include all resources that are assigned to the activity.
3. Construction planning, scheduling and estimating Techniques
❑ Construction Scheduling;
❖ Basics of Critical Path Method;
• There are two basic methods of
drawing CPM diagrams: the arrow
diagram (sometimes called activity
on arrow) and the precedence
diagram (sometimes called activity
on node).
• The precedence method can also
provide the start-to-start, finish-to-
finish, start-to-finish, and finish-to-
start relationship of activities,
which can significantly reduce the
number of activities that are
required in a network diagram.
3. Construction planning, scheduling and estimating Techniques
❑ Construction Scheduling;
❖ Basics of Critical Path Method;
• The arrow diagram: Activity on Arrow (AoA)
• A dummy activity is assumed to have no time duration and can be graphically
represented by a dashed line in a network

Activity on Arrow Diagram for Critical Path Method

3. Construction planning, scheduling and estimating Techniques
❑ Construction Scheduling;
❖ Basics of Critical Path Method;
• The precedence method ; Activity on Node (AoN)
✓ Start-to- Start (SS)
✓ Finish-to- Finish (FF),
✓ Start-to- Finish (SF),
Relationship between Activities
✓ Finish-to-Start (FS),
❖ EF=ES+D
❖ LS=LF-D
❖ TF= LF-EF = LS-ES
❖ FF=ES-EF
❖ Duration=quantity of work/Productivity rate Activity on Nod Diagram for Critical Path Method
3. Construction planning, scheduling and estimating Techniques
❖ The Activity on Node (AoN) relationship between activities;
✓ Start-to- Start (SS): the start of the successor is dependent on the predecessor
actually starting.
does not mean that two tasks start at the same time
✓ Finish-to- Finish (FF): the successor cannot finish until the predecessor has actually
finished.
• activities will not necessarily finish at the same time.
✓ Start-to- Finish (SF): when the start of a task (considered the predecessor because its
start drives the relationship) allows the task that has been
going on (the successor) to finish.
✓ Finish-to-Start (FS): the successor cannot start until the predecessor has actually
finished.
3. Construction planning, scheduling and estimating Techniques
❑Construction Estimation;
❖ Estimation of the required resources and durations for individual tasks;
➢ Estimation of Activity Durations;
i. Evaluate activities one at a time, independently of all others
ii. For each activity, assume a normal level of manpower and/or equipment
iii. If time units of working days are being used, assume a normal workday.
iv. Concentrate on estimating the duration of the individual activity and ignore all
other time considerations
v. Use consistent time units throughout
vi. Assume normal weather conditions in estimating the duration needed to
accomplish each activity.
3. Construction planning, scheduling and estimating Techniques
❑Construction estimation;
➢ Estimation of activity durations;
✓ One effective way of estimating an activity duration is to compute it by applying a crew
or equipment production rate to the total number of units of work to be done.
✓ Another approach in determining activity times is to assume a crew size and use the
estimated labor unit cost rather than a production rate.
✓ When estimating activity times, one special circumstance must be kept in mind: the case
where the same work item is repeated several times during the construction period.
✓ Time estimates of surprising accuracy often can be made informally. Experienced
construction supervisors have an almost uncanny ability to give off-the-cuff time
estimates that usually prove to be reasonably close.
✓ Activity durations customarily are expressed in terms of full working days because, in
most cases, to do otherwise is to assume a fictitious degree of accuracy.
3. Construction planning, scheduling and estimating Techniques
❑Construction estimation;
❖ Determination of duration of activities;
• duration can be estimated using the following equation which put into
consideration the productivity of the method deployed;
➢ Dij = Aij / (Pij * Nij)
❖ important rules to the estimate activity durations;
1. Evaluate activities one at a time, independently of all others. For a given activity,
assume that materials, labor, equipment and other needs will be available when
required.
2. For each activity assume a normal level of manpower and/or equipment.
Compute the estimate duration by applying a crew or equipment production rate
to the total number of units of work to done. (D =P/W)
3. Construction planning, scheduling and estimating Techniques
❑Construction estimation;
➢ Cost Estimation;
✓ the engineer’s or architect’s estimate
✓ detailed cost estimate;
✓ contractor’s estimate.
❖ During the design phase of a construction project, the project costs are continuously
approximated and reviewed following each design change to ensure that they will not
exceed the owner’s budget.
❖ This working budget is generally referred to as the engineer’s or architect’s estimate.
❖ Upon design completion, the field cost-control system is initiated by making a final, detailed
cost estimate of the entire work.
❖ The construction contractor or another party who will be directly involved in the field
operations normally prepares this ‘‘contractor’s estimate.’’
❖ During the construction process, cost accounting methods are used to retrieve actual
construction expenses from ongoing construction operations.
3. Construction planning, scheduling and estimating Techniques
❑Construction estimation;
❖ Cost Estimation;
• Preliminary estimates of future construction expenditures, made during the project
planning and design phases, are necessarily approximate because they are compiled
before the project is completely defined.
• Fundamentally, all conceptual price estimates are based on some system of gross
unit costs obtained from previous construction work.
• These unit costs are extrapolated forward in time to reflect current market
conditions, project location, and the particular character of the job presently under
consideration.
• Some of the methods commonly used to prepare preliminary estimates include:
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Some of the methods commonly used to prepare preliminary estimates include:
➢ Cost per Function Estimate;
➢ Index Number Estimate
➢ Unit Area Cost Estimate
➢ Unit Volume Cost Estimate
➢ Panel Unit Cost Estimate
➢ Parameter Cost Estimate
➢ Partial Takeoff Estimate
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Preliminary Estimates;
➢ Cost per Function Estimate;
• based on the estimated expenditure per unit of use, such as cost per
patient, student, seat, or car space.
➢ Index Number Estimate
• done by multiplying the original construction cost of the existing structure
by a national price index that has been adjusted to local conditions, such as
weather, labor expense, materials costs, transportation, and site location.
• A price index is the ratio of present construction cost to the original
construction outlay for the type of structure involved.
➢ Unit Area Cost Estimate
• is an approximate cost obtained by using an estimated price for each unit of
gross floor area.
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Preliminary Estimates;
➢ Unit Volume Cost Estimate
• based on an approximated expenditure for each unit of the total volume enclosed
➢ Panel Unit Cost Estimate
• based on unit costs per square unit area of floors, unit length of perimeter walls,
partition walls, and unit roof area.
➢ Parameter Cost Estimate
• This estimate involves unit costs, called parameter costs, for each of several
different building components or systems.
• The prices of site work, foundations, floors, exterior walls, interior walls, structure,
roof, doors, glazed openings, plumbing, heating and ventilating, electrical, and
other items are determined separately by the use of estimated parameter costs.
➢ Partial Takeoff Estimate
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Preliminary Estimates;
➢ Partial Takeoff Estimate;
• This analysis uses quantities of major work items taken from partially completed
design documents.
• These are priced using estimated unit prices for each work item taken off.
• During the design stage, this type of estimate is considered to provide the most
accurate preliminary costs.
• Yet the feasibility of this method is highly dependent on the availability of
completed design documents.
• Generally this estimate cannot be made until well into the design process.
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Final Cost Estimate;
✓ The final cost estimate of a project is prepared when finalized working drawings
and specifications are available.
✓ This detailed estimate of construction expense is based on a complete and detailed
survey of work quantities required to accomplish the work.
✓ The process involves the identification, compilation, and analysis of the many items
of cost that will enter into the construction process.
3. Construction planning, scheduling and estimating Techniques
❖ Cost Estimation;
▪ Cost estimating is one of the most important steps in project management.
▪ A cost estimate establishes the baseline of the project cost at different stages of
development of the project.
▪ According to the American Association of Cost Engineers, cost engineering is defined
as that area of engineering practice where engineering judgment and experience are
utilized in the application of scientific principles and techniques to the problem of
cost estimation, cost control and profitability.
▪ Generally, the accuracy of a cost estimate will reflect the information available at the
time of estimation.
4. Construction Management

Monitoring and Controlling Process

❑Time, Cost and Quality Control

❑ Labor, Material and Equipment Management
4. Construction Management
❑ Construction Phase; On-Site Operation Monitoring and Controlling process
➢ Controlling and monitoring; method for comparing actual with planned
performance, action taken to bring the deficient in to conformance
i. Project program; plan for work schedule of the project, develop
realistic schedule and updating
ii. Budget; plan for cost aspect of the work.
iii. Quality; plan for quality management, plan-to-check-act;
iv. Work safety; safety management, means to ensure safety at
construction project.
v. Environmental concern
4. Construction Management
❑ Construction Phase; On-Site Operation Monitoring and Controlling process
❖ monitoring and controlling various aspects of the project,
managing resources effectively and coordinating the vital
documentation and communication activities.
➢ Resource management; productivity and performance of
personnel, manpower or labor, machinery, and materials.
✓ Resource Definition,
✓ Resource aggregation
✓ Resource allocation,
✓ Resource leveling
4. Construction Management
❑Cost Control or Management
• Project cost control begins with preparing the original cost
estimate and the subsequent construction budget.
• Cost accounting methods are applied to determine the actual
costs of production.
• periodic reports are prepared that forecast final project costs
and compare these predicted costs with the established
budget.
• Cost reports are designed to serve as management-by-
exception devices, making it possible for the contractor
o to determine the cost status of the project and
o to pinpoint those work classifications where expenses are excessive.
• Labor, materials, supplies, equipment charges, subcontract payments,
overhead costs, and other items of expense are charged to the project
4. Construction Management
❑Cost Control or Management
❖ Project cost accounting;
• provides the basic data required for both cost control and estimating.
• Cost accounting relates solely to determining the detailed makeup of productivity
and costs associated with producing a construction product in the field, including
the necessary overhead expense.
• Cost accounting involves the continuous determination of productivity and cost
data, the analysis of this information, and the presentation of the results in
summary form.
• Construction cost accounting is necessarily concerned with costs, but it is also
concerned with man-hours, equipment-hours, and the amounts of work
accomplished.
• Project cost accounting must strike a workable balance between too little and too
much detail.
4. Construction Management
❑Cost Control or Management
❖ Labor and Equipment Costs;
• basic accounting principle for construction contractors that project income
and expenses be recorded by individual job.
• the two categories of job expense are characterized by considerable
uncertainty and can fluctuate substantially during the construction period.
• are the only categories of job expense that the contractor can control to any
extent, and they merit and need constant management attention.
❖ Job costs associated with materials, subcontracts, and nonlabor items of
project overhead are of a reasonably fixed nature, and cost control of these
kinds of expenses is effected mainly by disbursement controls applied to
purchase orders and subcontracts.
4. Construction Management
❑Cost Control or Management
❖ Cost Accounting Reports;
• Cost report intervals are very much a function of project size, duration, and nature
of the work, and the type of construction contract involved.
• weekly labor and equipment cost summaries are about optimum for most
construction operations,
❖ Labor Time Reporting;
• The source documents for labor costs and cost code allocations are labor time
cards, the same cards used for payroll purposes.
• They report the hours of labor time for every tradesman and the project cost
codes to which the labor is applied.
❖ Measurement of Work Quantities
4. Construction Management
❑Cost Control
• concerned with influencing factors that create change to the cost
baseline, to determining that the cost baseline has changed and
managing the actual changes if they occur.
• Cost control includes:
❖ Monitoring cost performance to detect and understand
variance from plan
❖ Ensuring that all appropriate changes are recorded accurately
❖ Preventing incorrect and inappropriate changes from being
included in the cost baseline
❖ Informing appropriate stakeholders of authorized changes
❖ Acting to bring expected costs within acceptable limits
4. Construction Management
❑Cost Control;
• Two related outcomes are expected from the periodic monitoring
of costs:
➢ Identification of any work items whose actual costs exceed their
budgeted costs, with subsequent actions to try to bring those costs into
conformance with the budget; and
➢ Estimating the total cost of the project at completion, based on the cost
record so far and expectations of the cost to complete unfinished items.
❑ For cost control on a project, the construction plan and the
associated cash flow estimates can provide the baseline reference
for subsequent project monitoring and control.
4. Construction Management
❖ Project Cash Flow /Forecast;
➢ The final or detailed cost estimate provides a baseline for the
assessment of financial performance during the project.
➢ For control and monitoring purposes, the original detailed
cost estimate is typically converted to a project budget, and
the project budget is used subsequently as a guide for
management.
➢ Graphical presentations highlight the relationship between
budget and actual performance
❖ Project Cash Flow Diagram
4. Construction Management
❑Time Management;
• Project management now shifts its attention to implementing the plan in
the field and establishing a progress monitoring and information
feedback procedure.
• The time management system has entered the execution phase.
• An operational plan and a detailed calendar schedule have been
prepared to meet project objectives.
• Considerable time and effort are required to check and analyze the time
progress of the job and to take whatever action may be required, either
to bring the work back on schedule or to modify the schedule to reflect
changed job conditions.
• These actions constitute the monitoring and rescheduling phases of the
time management system
4. Construction Management
❑Aspects of Time Management;
• In an environment of constant change, the established time goals of a
construction project must be met
• The current operational plan and schedule, consonant with established
project time constraints, underpin the time management system.
• Forward- and backward-pass calculations, based on the latest version of
the job network, produce a work schedule with calendar dates given for
the start and finish of each project activity.
• This schedule is used for the day-to-day time control of the project. Such
a system constitutes an effective early-warning device for detecting
when and where the project may be falling behind schedule.
4. Construction Management
❖Time Management Cycle; ❑ The monitoring phase of time management
involves the periodic measurement of actual
job progress in the field and its comparison
with the planned objectives.
❑ Project monitoring involves the
determination of work quantities put into
place and the reporting of this information in
a format suitable for its comparison with the
programmed job schedule.
❑ Network activities constitute a useful and
convenient basis for progress measurement
and reporting.
❑ Key-date schedule is prepared before field
operations actually begin.
4. Construction Management
❖Progress Measurement;
➢ To make periodic measurements of progress in the field, network activities serve as exceptionally
convenient packages of work.
➢ The advancement of an activity in progress can be expressed in different ways.
➢ Three commonly used methods are:
1. Estimated number of working days remaining to complete the activity
2. Estimated percentage completion of the activity in terms of time
3. Quantities of work units put into place.
➢ Progress data in the other forms are readily converted into days to complete by using these
relationships:
4. Construction Management
❖Progress Measurement;
➢ a project performance measurement technique for cost and schedule control area;
✓ Earned Value Method;
• is a project performance measurement technique that integrates scope,
time, and cost data.
• measures project performance by comparing the amount of work planned
with actually accomplished, in order to determine if cost and schedule
performance as planned.
• The planned value (PV), formerly called the budgeted cost of work scheduled
(BCWS), also called the budget
• Actual cost (AC), formerly called actual cost of work performed (ACWP), is
the total of direct and indirect costs incurred in accomplishing work on an
activity during a given period.
• The earned value (EV), formerly called the budgeted cost of work performed
(BCWP), is an estimate of the value of the physical work actually completed
❖ Earned Value Method;
4. Construction Management
❑Resource Management;
❖Halpin and Woodhead (1998), in their introduction to construction
management, state that ‘construction management addresses how the
resources available to the manager can best be applied’.
❖ The four primary resources to be managed are the ‘four Ms’ of Manpower,
Machines, Materials and Money.
➢ Human Resource management
➢ Material Management
➢ Equipment and Machinery management
❖ Resource management; definition, allocation, aggregation and leveling
4. Construction Management
❑Resource Management;
❖ Resource Definition
➢ decide exactly what resources are considered important enough to be managed.
➢ plan and manage the people, machines, materials, and money on daily basis
❖ Resource Allocation; called resource loading,
➢ concerned with assigning the required number of resources identified for each
activity in the plan
❖ Resource Aggregation
➢ is simply the summation, on a period-by-period basis, of the resources required
to complete all activities based on the resource allocation carried out previously.
➢ may be done on an hourly, daily, or weekly basis, depending on the time unit
used to allocate resources
❖ Resource Leveling or smoothing.
➢ is a process used to examine a project for an unbalanced use of resources
(usually people) over time, and for resolving over-allocations or conflicts.
➢ It applies when it is desired to reduce the hiring and firing of resources and to
smooth the fluctuation in the daily demand of a resource
4. Construction Management
❑Material Management;
❖ Ensuring a timely flow of material is an important concern of
project managers
❖ Materials represent a major expense in construction, so
minimizing procurement or purchase costs presents important
opportunities for reducing costs.
❖ Materials management is not just a concern during the
monitoring stage in which construction is taking place.
❖ Decisions about material procurement may also be required
during the initial planning and scheduling stages.
❖ Sufficient time for obtaining the necessary materials must be
allowed
4. Construction Management
❑Material Management;
❖ Material Procurement and Delivery
• The main sources of information for feedback and control of material
procurement are requisitions, bids and quotations, purchase orders
and subcontracts, shipping and receiving documents, and invoices.
• Under ordinary circumstances, the constructor will handle the
procurement to shop for materials with the best price/performance
characteristics specified by the designer.
• materials for delivery to and from a construction site may be broadly
classified as:
✓ Bulk materials,
✓ Standard off-the-shelf materials, and
✓ Fabricated members or units.
4. Construction Management
❑Material Management;
❖ Material Procurement and Delivery
• Bulk materials refer to materials in their natural or semi-processed
state, such as earthwork to be excavated, wet concrete mix, etc. which
are usually encountered in large quantities in construction.
• Standard piping and valves are typical examples of standard off-the-
shelf materials which are used extensively in construction projects.
Since standard off-the-shelf materials can easily be stockpiled, the
delivery process is relatively simple.
• Fabricated members such as steel beams and columns for buildings are
pre-processed in a shop to simplify the field erection procedures.
4. Construction Management
❑Material Management;
❖ Inventory Control
• The general objective of inventory control is to minimize the total cost of keeping the
inventory while making tradeoffs among the major categories of costs which include:
✓ Purchase costs,
✓ Order costs,
✓ Holding costs, and
✓ Unavailable costs.
• These cost categories are interrelated since reducing cost in one category may increase
cost in others.
❖ Cost Tradeoff in Material Management
• Ordering early and thereby providing a long lead time will increase the
chance that the item is available when needed but it increases the cost of
inventory and chance of spoilage on site.
4. Construction Management
❑Personnel Supervision and Labor Productivity
▪ understand and practice the human resources function both at
organization and project level
▪ know about on-site personnel management includes the
methods by which craftspeople are hired and maintained
▪ Human resources management
✓ managerial functions include planning, organizing, directing
and controlling the human resources.
✓ Operative functions routine activities in which the human
resources department will be doing as day today activities
such as human resources planning, job analysis, employee
motivation, performance management and training and
development etc.
4. Construction Management
❑Personnel Supervision and Labor Productivity
▪ Human resources management
✓ Operative HRM functions include:
• Human resources planning;
• Job analysis design;
• Recruitment and selection;
• Training and development;
• Performance appraisal;
• Compensation and remuneration;
• Motivation, welfare, health and safety; and
• Industrial relations.
▪ Equipment/Machinery Management
4. Construction Management
❖ Equipment/Machinery Management
• Construction of various facilities requires the utilization of
construction equipment
• know the nature of the work for which the equipment is being used,
• construction equipment should be selected and used to produce
the intended quality in the most cost-effective manner
• Factors considered in construction equipment selection
✓ Use of available equipment
✓ Suitability of job conditions
✓ Uniformity in types;
✓ Size of equipment;
✓ Use of standard equipment;
✓ Unit cost of production;
4. Construction Management
❑Quality Management;
➢is the process of identifying and administering the activities
needed to achieve the quality objectives of an organization.
➢is defined as “all activities of the overall management function
that determine the quality policy, objectives and responsibilities,
and implement them by means such as quality planning, quality
control, quality assurance, and quality improvement within the
quality system.“(BS EN ISO 8402).
▪ refers to all activities of overall management functions,
especially top management leadership, that determine quality
policy objectives and responsibilities for all members of the
organization.
• “the application of quality management system in managing a process
to achieve maximum customer satisfaction at the lowest overall cost to
the organization while continuing to improve the process.”
4. Construction Management
❑Quality Control;
➢ an important project management function
➢ one of the critical attributes of project success, with the others being
cost, time and safety
➢ is an acceptable "optimum" proportion of defective items
➢ Trying to achieve greater quality than this optimum would substantially
increase costs of inspection and reduce productivity
➢ total quality control has substantial economic benefits that had been
unappreciated in traditional approaches.
✓ Expenses associated with inventory, rework, scrap and warranties were reduced,
✓ Worker enthusiasm and commitment improved,
✓ Customers often appreciated higher quality work and would pay a premium for
good quality,
✓ As a result, improved quality control became a competitive advantage.
4. Construction Management
❑Quality Control;
➢ Quality Management involves the following processes:
✓ Setting Quality Standards to achieve both technical and managerial
competence,
✓ Scheduling inspections,
✓ Managing any required rework,
✓ Documentation.
❖ delivering quality projects is critical to achieving customer satisfaction.
❖ ensure that all materials used and all work performed on a project
conform to the requirements of the contract plans and specifications.
1. Testing and Inspection Requirement
2. Quality Assurance System
4. Construction Management
❑Quality Control;
1. Testing and Inspection Requirement;
➢ Quality control starts with the submittal process.
➢ A submittal is a document or product turned in by the construction team to verify that
what they plan to purchase, deliver and ultimately install is in fact what the design team
intended in their drawings and specifications.
➢ A submittal can be any of the following:
• Color charts,
• Coordination drawings,
• Cut sheets of product data,
• Fabrication (shop) drawings,
• Samples,
• Mock-ups,
❖ Approved materials and equipment are then procured.
❖ All materials and equipment's should be inspected as they are being
delivered to the project site.
4. Construction Management
❑Quality Control;
2. Quality Assurance System;
❑ Quality assurance is concerned with developing a formal structure,
organization and operational procedures to ensure specified quality
throughout the total construction process.
❑ Quality assurance:
▪ is concerned with planning and developing the technical and managerial
competence needed to achieve the host organization’s desired objectives,
▪ is concerned with the management of people, addressing the roles, duties
and responsibilities of individuals within the organizations
▪ is primarily the responsibility of management; its structure and
implementation as part of the total organizational framework,
▪ is also an important aspect of the marketing and promotional strategy of
the organization.
4. Construction Management
❖ Documentation and Communication
• on-site management of a construction project involves great
amounts of paperwork
• The purpose is to communicate directions, questions, answers,
approvals, general information and other material with appropriate
members of the project team
• Some of the documents necessary for the execution of the contract,
primarily from the contractor’s point of view are dealt with
hereunder.
1. General documents;
2. Contract documentation;
3. Communication records;
4. Project status documentation;
5. Correspondence;
6. Material management; and
7. Financial management.
5. PROJECT CLOSEOUT
❑ Project Completion
➢ the transition from its construction to its occupation by the end user
(the client)
➢ special activities must take place before the contractor’s
responsibilities can be considered complete.
✓ testing and startup tasks, the final cleanup, various inspections and
remedial work that may result from them and the process of closing
the construction office and terminating the staff’s employment
✓ Approvals and certifications that allow the contractor to receive final
payment, a set of as-built drawings that include all changes made to
the original design, operating manuals, warranties and a final report.
5. PROJECT CLOSEOUT
❑Project Acceptance
• Project acceptance and handover is a stage at which the project owner
accepts and enter into facility usage and operation.
➢ Provisional Acceptance
❖ When the works has been substantially completed and have passed any final test
that may be prescribed by the contract, the contractor may give notice to the
Engineer to effect the provisional acceptance.
❖ It usually covers the defects liability (maintenance) period which spans 12
months.
❖ If the Engineer rejects the request, he shall prepare a checklist of all defective
works and give it to the contractor for correction.
❖ Whenever the Engineer confirms that the work is substantially completed he
shall conduct the acceptance in the presence of the Employer.
❖ During the defects liability period any defects, shrinkage or other faults which
are due to materials or workmanship not in accordance with the contract are to
be specified by the Engineer in a schedule of defects.
❖ The contractor has to rectify the items in the schedule of defects within a
reasonable time
5. PROJECT CLOSEOUT
❑Project Acceptance
➢ Final Acceptance
• When the Engineer is satisfied that all-defective work has been made good, the Contract
requires that the certificate for completion must be issued within 28 days of whichever of
the following is the latest:
✓ The end of defects liability period, or
✓ The completion of the making-good of defects.
• Procedures of Final Acceptance
➢ Final acceptance may be requested by the contractor and confirmed by the Engineer. If
the Engineer rejects the request, he shall prepare a checklist of all defective works and
give it to the contractor for correction
➢ Whenever the Engineer confirms that the defective works has been made good he asks
in writing to the stakeholders to send their representative to conduct the acceptance
jointly.
➢ The representatives inspecting the site and the work should confirm, that defective
works has been made good.
➢ Following the confirmation of all representatives, the engineer should prepare the
standard format prepared for this purpose for signing by the committee.
5. PROJECT CLOSEOUT
❑Contract Closeout
➢ It is a transition from design and construction to the
actual use of the constructed facility.
➢ The management team must provide documentation,
shop drawings, as built drawings, and operation
manuals to the owner organization.
➢ Assessment of the project team’s performance is crucial
in this stage for avoiding mistakes in the future.
➢ Actual activity costs and durations should be recorded
and compared with that was planned.
6. WORK SAFETY MANAGEMENT
❑ Work Safety Management
• Health, safety and working environment
• At the construction workplaces the workers are exposed to hazards of
occupational risks and injuries.
• These scenarios relate to the type of hazard that may arise during
construction activities as a result of equipment failure, inadequate
procedures, inexperienced or poorly trained staff, etc.
• The typical safeguards for these general incidents are the controlled safe
work procedures for the type of construction work undertaken.
• the key to control safety and health is to predict the hazards and thus be
in a position to eliminate them
6. WORK SAFETY MANAGEMENT
❑ Work Safety Management
• Construction work also exposes workers to a wide range of health
problems: from asbestosis to back pain; hand/arm vibration syndromes
to cement burns.
• A safe work environment helps to keep skilled employees on the job and
projects on track by reducing accidents that result in injuries and
schedule delays, while also reducing the risks of litigation and regulatory
action.
• safety measures include the provision and use of specific safety
equipment, methods of carrying out specific tasks safely, and the
inspection and appropriate use of tools.
• site management need information quickly about unsafe practices and
defective equipment.
6. WORK SAFETY MANAGEMENT
❑Consideration during design, construction and post construction processes;
• Safety should be part of the process right from the very beginning.
• Design professionals traditionally focus on the safety of the “end-user”,
such as the building occupant, motorist, or facility operator
• During construction, the site should be well organized that workers are
able to safely move through with minimum obstacle.
• Precaution signs should be placed at required locations insuring their
visibility for everyone working in the site.
• Health and safety management works to eliminate or reduce accidents
from happening.
• The control measures should be put in place and checks made to ensure
that they are working and are meeting legal requirements.
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑Risk and Insurance in Construction
➢ Risk is “an uncertain event or condition that if it occurs has a positive or
negative impact on at least one project objective that could include
scope, schedule, cost, and quality”
➢ Risk cannot be avoided but it is recommended to recognize, assess and
manage it
➢ Risk management is an important project management planning and
control tool which plays a vital role in improving decision-making that is
active throughout the life of a project
➢ Risk can be viewed as measurable uncertainty; and uncertainty as
immeasurable risk.
➢ Uncertainty is a mere intellectual curiosity and only becomes a risk
when it matters.
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑Risk and Insurance in Construction
➢ unexpected economic losses have occurred. Such losses would occur
even if the insurance transaction had never been developed.
➢ Through the operation of an insurance system, however, combined
losses can be predicted.
➢ The Predictability of losses is basic to an insurance system`s operations.
➢ Basic to insurance allows a group’s (but not an individual`s) losses to be
predicted accurately, it allows the cost of losses to be financed and
redistributed in advance
❑ Engineering insurance
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑ Engineering Insurance
• can be divided into two main groups.
➢ insurances that provide purely material damage cover such as Machinery
Breakdown, Boiler, Electronic Equipment insurance, Contractors’ All Risks, and
Erection All Risks insurances.
➢ insurances that cover the material damage or the economic loss that results from
damage are indemnifiable under a branch of insurance named in the first group.
Such insurances are deterioration of stock and Machinery Loss of profits
Insurances.
• Types of Insurance;
1. Life Insurance;
2. Property Insurance; and
3. Liability Insurance;
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑ Engineering Insurance
• can be divided into two main groups.
➢ insurances that provide purely material damage cover such as Machinery
Breakdown, Boiler, Electronic Equipment insurance, Contractors’ All Risks, and
Erection All Risks insurances.
➢ insurances that cover the material damage or the economic loss that results from
damage are indemnifiable under a branch of insurance named in the first group.
Such insurances are deterioration of stock and Machinery Loss of profits
Insurances.
• Types of Insurance;
1. Life Insurance;
2. Property Insurance; and
3. Liability Insurance;
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑ Basic Parts of Insurance Policy
➢ an insurance policy is a contract whereby a person, called the insurer, undertakes
against payment of one or more premiums to pay to a person, called the beneficiary,
a sum of money where a specified risk materializes
➢ Insurance policies are composed of four basic parts:
a) Declarations
b) Insuring agreement
c) Deductibles
d) Exclusions
e) Conditions
f) Endorsements
7. INSURANCE IN CONSTRUCTION INDUSTRY
❑ Major Types of Construction Insurance Policies
❖ Contractor’s All Risk Policy: provides “all risk” cover.
• provides cover to hazard that is not specifically excluded.
• It is effective during the performance of the contract and the period
of maintenance.
❖ Professional Indemnity Insurance: The legal liability incurred in the
course of a professional’s work is covered under this policy.
❖ Contractors Third Party Liability Policy: covers loss or damage to third
party persons or property arising out of the construction or
maintenance of the works.
❖ Contractors Employers Liability Policy: Covers damages in respect of
injuries to workmen in their employment, or employment of any sub-
contractor.
 END
Good Luck!