Construction
-The ability to build things is one of the most ancient of human skills.
“The type of methods for placing construction are diverse.”
Project
- An endeavor that is undertaken to produce the results that are expected from the requesting
party.
- May be design only, construction only, or a combination of design and construction.
3 components of a Project
1. Scope- represents the work accomplished the quantity and quality of the work.
2. Budget- refers to costs, measured in dollars (peso) and / or labor- hours of work.
3. Schedule- refers to the logical sequencing and timing of the work performed.
“A balance is necessary between scope, budget, and schedule”
“Not only should the scope, budget, and schedule be well defined, but each must be linked together since
one affects the other, both individually and collectively”
“The manager must be clever and innovative in the utilization of resources available.”
“It is the duty of a project manager to ensure that the project scope, budget, and schedule are linked
together”.
Construction Project Management handles the planning, coordination, and execution of a construction
project, whether it’s agricultural, residential, commercial, institutional, industrial, heavy civil, or
environmental.
Construction Project Management is a complex field, requiring knowledge in many different areas like
finance, mediation, law, business, and more.
Construction Project Managers shoulder responsibility of keeping the project moving according to plan.
3 Management Concepts
1. Systematic Management- is an approach to management that focuses on the management
process rather than on the final outcome.
2. Scientific Management- approach developed by Taylor is based on the concept of planning of
work to achieve efficiency, standardization, specialization and simplification.
3. Humanistic Management - is an approach to management theory based on the idea of human
needs and human values.
Summary:
Humanistic management focuses on the human aspects and well-being of employees, scientific
management emphasizes efficiency and productivity through systematic study of work processes.
Systematic management, on the other hand, takes a holistic approach, considering the organization as
complex system with interconnected parts.
Management Levels of Construction
Organizational considerations lead to a number of hierarchical that can be identified in construction.
4 levels of hierarchy
1. Organizational- concerned with legal and business structure of a firm, the various functional areas
of management, and the various functional areas of management and interaction between head
office and field managers performing these management functions.
2. Project- dominated by terms relating to the breakdown of the project for the purpose of time and
cost control.
3. Operation- the construction operation and process level is concerned with the technology and
details of how construction is performed.
4. Task- concerned with the identification and assignment of elemental portions of work to field units
and work crews.
Hierarchal Level
Study of construction as a discipline can be broadly structured into 2 general themes:
1. Construction Technology
2. Construction Management
Construction Technology relates to the methods or techniques used to place the physical materials
and elements of construction at the job site.
Construction Management addresses how the resources available to the manager can be best applied.
5 M’s to Structure of Organization
1. Man
2. Material
3. Machine
4. Methods
5. Money
Module 1.2
Responsibilities of Parties
A team approach between the owner, designer, and contractor must be created with a cooperative
relationship to complete the project in the most efficient manner.
Quality- is the responsibility of all participants in a project, including all levels of management and workers
in each of the parties.
Owner
- responsible for setting the operational criteria for the completer project.
- Need to identify their level of involvement in the project, e.g the review process, required reports,
and levels of approval.
- Responsible for setting parameters on total costs, payment of costs, major milestone, and the
project completion date.
Designer
- Producing design alternatives, computations, drawings, and specifications that meet the needs of
the owner.
- Usually prepare an estimate of the probable construction cost for the design they have prepared.
Contractor
- Responsible for the performance of all work in accordance with the contract documents that have
been prepared by the designer.
- Must prepare an accurate estimate of the project, develop a realistic construction schedule, and
establish an effective project control system for cost, schedule, and quality.
Project Management mat be defined as the art and science of coordinating people, equipment, materials,
money and schedule to complete a specified project on time and within approved cost.
The project manager must develop a good working relationship with people in order to benefit from the
best if their abilities.
Project Teams
- Must be assembled to accomplish the work necessary to complete engineering and construction
projects.
Team members are vital to the success of the project.
Project Manager must make sure that his or her team understands and is focused on the desired outcome
of the project.
- It is the duty of a project manager to organize a project team of people and coordinate their efforts
in a common direction to bring a project to successful completion.
4 Questions that must be addressed
1. Who- this question identifies the individuals or roles responsible for various tasks within the
project.
2. Does What- this question outlines the specific tasks and activities that need to be performed to
achieve the project’s objectives.
3. When-This question addresses the timeline and deadlines associated with different project
activities and milestone.
4. How much- the question deals with resource allocation, including budget, materials, and other
resources needed for the successful completion of the project.
Teams
Small Project
- Project duration is Short,
- Minimal contact between the PM and TM
- Few individuals are assigned and take responsibility for multiple functions.
Wide Project
- Diverse expertise of multiple teams must converge; Must develop an attitude of Shared
Ownership.
- PM of each team must aim to contribute in solving problems rather than doing just what they feel
is necessary.
- There must be a Single head PM to make final decisions, regardless of the size and the member of
the teams.
Key concepts of Project Management
Although each project is unique, there are key concepts that a project manager can use to coordinate and
guide a project to completion.
1. Ensure that one person, and only one person, is responsible for the project scope, budget, and schedule
2. Don't begin work without a signed contract, regardless of the pressure to start
3. Confirm that there is an approved scope, budget, and schedule for the project KEY CONCEPTS OF
PROJECT MANAGEMENT
4. Lock in the project scope at the beginning and ensure there is no scope growth without approval
5. Make certain that scope is understood by all parties, including the owner
6. Determine who developed the budget and schedule, and when they were prepared
7. Verify that the budget and schedule are linked to the scope KEY CONCEPTS OF PROJECT MANAGEMENT
8. Organize the project around the work to be performed, rather than trying to keep people busy
9. Ensure there is an explicit operational work plan to guide the entire project
10. Establish a work breakdown structure that divides the project into definable and measurable units of
work
11. Establish a project organizational chart that shows authority and responsibilities for all team members
KEY CONCEPTS OF PROJECT MANAGEMENT
12. Build the project staff into an effective team that works together as a unit
13. Emphasize that quality is a must, because if it doesn't work it is worthless, regardless of cost or how
fast it is completed
14. Budget all tasks; any work worth doing should have compensation
15. Develop a project schedule that provides logical sequencing of the work required to complete the job
KEY CONCEPTS OF PROJECT MANAGEMENT
16. Establish a control system that will anticipate and report deviations on a timely basis so corrective
actions can be taken.
17. Get problems out in the open with all persons involved so they can be resolved
18. Document all work, because what may seem irrelevant at one point in time may later be very
significant
19. Prepare a formal agreement with appropriate parties whenever there is a charge in the project
S20. Keep the client informed; they pay for everything and will use the project
Module 1.3 (Contracts and Specifications)
Contract Management could be defined as a multi-stage process that goes on through the entire duration
of the contract and ensures that the parties meet their contractual obligations in order to deliver the
specific objectives provided in the contract.
- According to Fédération Internationale Des Ingénieurs – Conseils (from French, the International
Federation of Consulting Engineers) or FDIC, a contract means the general conditions, the
supplementary conditions, the specifications, the drawing , the bill of quantities, the letter of
Acceptance and the contract Agreement.
Contract is a mutual agreement between two or more parties that something shall be done, an agreement
enforceable at law.
Describe Scope of work
- Establish time frame
o Set fourth obligations and relationship
o Minimize dispute
- Establish cost and payment provision
o Improve Economic return of investment
Construction Contract provides important protection for the parties to the contract and for both
contractors and homeowners or the owners of the project or building if the project is a commercial
construction project.
The most important aspect of a construction contract - and from where most of dispute arise are:
1. The definition of the scope, i.e. what exactly has to be done, and what happens if the changes are
required or desired along the way;
2. When the works have to be concluded and what happens if they are concluded on time;
3. When payments are due and what happens if they are not paid on time;
4. Technical specifications and quality and performance requirements and what happens if the
agreed standards are not met.
Construction Contract Types are usually defined by the way, the disbursement is going to be made and
details other specific terms, like duration, quality, specifications, and several other items.
4 Common types of Construction Contracts
1. Lump sum or Fixed Price contract
This contract shall be used when the risk needs to be transferred to the builder and the owner wants to
avoid change orders for unspecified work.
- Total fixed price for all construction related activities
- Can include incentives benefits for early termination, or can also have penalties, called liquidation
damages, for a late termination
2. Cost Plus Contract
This type of contract involves payment of the actual costs, purchases or other expenses generated directly
from the construction activity.
Multiple variations of cost plus contracts and the most common are:
1. Cost plus Fixed Percentage
2. Cost plus Fixed Fee
3. Cost plus with guaranteed maximum price contract
4. Cost plus Fixed with guaranteed maximum price and bonus contract
- Are used when the scope has not been clearly defined and it is the owner responsibility to
establish some limits on how much the contractor will be billing.
- Involve payment of the actual costs, purchases or other expenses generated directly from the
construction activity.
- Must contain information about covering contractor’s overhead and profit.
3. Time and Material Contracts
- Preferred if the project scope is not clear or defined
- Must establish hourly or daily rate
- Include additional expenses that could arise in process.
4. Unit Pricing Contract
- Commonly used by builders and federal agencies.
- Unit prices can also be set during bidding process as the owner requests specific quantities and
pricing for a pre-determined amount of unitized items.
Contract Conditions usually included in the book of specifications (or in the accompanying architectural
drawings) of a contract, that set the minimum performance requirements for the contractor.
- Set out the principal legal relationship between the parties to a construction project, determining
the allocation of risk and consequently, price.
Specifications is the part of the contract that consists of written requirements for materials, equipment,
systems, standards, and workmanship as applied to the work, and certain administrative requirements and
procedural matters applicable to the work.
