CVIL 461

CONSTRUCTION PLANNING
AND COST ESTIMATING
(COLLABORATIVE WORKING IN
CONSTRUCTION)
PART 1 COURSE OVERVIEW

2
 COURSE OVERVIEW:
– LEARNING OBJECTIVES
• 1. Understand the factors and methods that are essential in successful management of construction projects.
• 2. Learn about principles of construction planning and different approaches to construction planning.
• 3. Form project schedules by theoretical methods and also computer software.
• 4. Understand and link the relationships between different construction activities to form accurate schedules.
• 5. Learn, understand and apply critical path method to project schedules.
• 6. Understand principles of construction cost estimating, learn about material and workmanship costs.
• 7. Understand bidding process and documentation required for submitting tenders.
• 7. Ability to calculate the unit costs and total costs for different construction activities.
• 9. Familiarity with professional and ethical issues and the importance of lifelong learning in construction project
management.
• 10. Familiarity with contemporary issues in construction project management.

3
 COURSE OVERVIEW
16 WEEKS

2 Quizzes– 20% TOTAL

1 MIDTERM EXAM – 30%

FINAL EXAM – 45%

ATTENDANCE – REQUIRED – 5%
4
 COURSE TEXTBOOKS
• Construction Economics:
An Introduction by Stephen Gruneberg.

• Modern Construction Management

by Frank Harris and Ronald McCaffer.

• Construction Project Management

by S. Keoki Sears, Glenn A. Sears and
Richard H. Clough.
5
 COURSE OVERVIEW
Course Introduction and Overview. Construction Project Management and Cost Estimating Basic
Week 1
Principles.

Organizations in Construction (Contractual Relationships, Company Organization, Matrix

Week 2
Organization Structure, Project Management Team, The Engineer’s Site Organization)

Project Planning: Bar Charts, network diagrams, Relationships between different construction
Week 3
activities. Overview of Creating project schedules with software.

Project Planning: CPM and PERT methods, Resource leveling and time-cost trade-offs. Updating
Week 4
and Reviewing Schedules.

Week 5 Tutorial and Quiz

6
 COURSE OVERVIEW
Introduction to Engineering Economy (Foundations of engineering economy,
Week 6 Time value of money, Cash flows, Interest Rate, Equivalence, Simple and
Compound Interest)
Time and Interest Effects on Money and Present Worth Analysis (Calculation of
Week 7 future, present and annual factors, Interpolate factor, calculate interest and
number of year for economic activities)
Economic Analysis (Capitalized Cost, Payback Period, Life-cycle cost, PW of
Week 8
Bonds)
Week 9 Midterm Exams

7
 COURSE OVERVIEW
Week 10 Main Principles of Cost Estimating. Bidding Documents and Tender Process.

Construction Contracts and Contract Documents (Lump Sum Contract, Negotiated

Week 11
Contract, Unit Price Contract, Specifications, Bill of Quantities)

Cost Estimating Methods for Various Construction Activities using Construction

Week 12
Drawings.

Week 13 Tutorial and Quiz

8
 COURSE OVERVIEW

Construction Plants (Equipment Cost, Depreciation Cost, Straight Line

Week 14 Method, Sum of the Years Digits Method, Double Declining Balance
Method, Investment Cost, Operating, Fuel ETC.)
Decision Making and Project Management (The Rent Lease Buy decision
Week 15
making and project management stages)

Week 16 Final Exams

9
 CONSTRUCTION

PART 2 MANAGEMENT
BASICS

10
 CONSTRUCTION SECTOR

• 10 % of the wealth generated in developed

economies
• Up to 20% of the wealth generated in
developing economies
• LEADING SECTOR to hundreds of sub-sectors
• Accelerator effect on economies

11
 FACTORS THAT IMPACT THE PERFORMANCE OF
CONSTRUCTION SECTOR

• ECONOMIC DEVELOPMENTS – INCREASE/DECREASE OF ACTIVITY, SUPPLY OF CREDIT, INTEREST

RATES
• INCREASE IN PUBLIC SPENDING – STIMULUS FOR NEW PROJECTS
• CHANGES IN REAL ESTATE VACANCY RATES – MIGRATING POPULATION, AGING POPULATION
• CHANGES IN BUYER BEHAVIOUR – INCREASE IN BUYING POWER
• ADVANCES IN CONSTRUCTION TECHNOLOGIES – LOWERING COST OF CONSTRUCTION
• POLITICAL DEVELOPMENTS IN THE REGION – CONFLICTS, NEW AGREEMENTS ETC.

12
 Project

• A project is a temporary endeavor undertaken to create a unique product or

service.
• Characteristics:
o Performed by people
o Constrained by limited resources
o Planned, executed, and controlled
3.10.2024- WEEK 1 - COURSE OVERVIEW AND CONSTRUCTION MANAGEMENT PRINCIPLES 13
 Project management

• Project management is the application of knowledge, skills, tools, and techniques

to project activities to meet project requirements.
• Project management is accomplished through the use of the processes such as:
– Initiating
– Planning
– Executing
– Controlling
– Closing
3.10.2024- WEEK 1 - COURSE OVERVIEW AND CONSTRUCTION MANAGEMENT PRINCIPLES 14
 PROJECT MANAGER SKILLS
• Integration Skills
• Communication skills: Written and oral communication skills…
• Planning and Organizational skills: record, track and locate information at a moments notice – including
memos, project reports
• Leadership Skills: gain consensus for strategic goals, establish direction, inspire and motivate others.
• Team Building and Motivational Skills
• Budgeting Skills: Establish and manage budgets and therefore need some knowledge of finance and
accounting principles
• Conflict Management Skills: causes? Decision?
• Negotiation and Influencing Skills: working with others to come to an agreement
• Political and Cultural Awareness: getting groups of people with different interest to cooperate creatively
even in the midst of conflict and disorder
15
 CONSTRUCTION PROJECT
• Unique, intricate, time consuming made up of hundreds of different
operations
• Needs a well-planned sequence of events
• Requires many inputs from different parties and stakeholders
• Subject to influence from many different factors

16
 CONCEPTION/PLANNING/DEFINITION

PHASES OF DESIGN

CONSTRUCTION
PROJECTS
PROCUREMENT & CONSTRUCTION

PROJECT HANDOVER - COMMISSIONING

17
 CONSTRUCTION MANAGEMENT
1. Project Integration Management, describes the processes required to ensure that the
various elements of the project are properly coordinated
2. Project Scope Management, describes the processes required to ensure that the project
includes all the work required, and only the work required, to complete the project
successfully.
3. Project Time Management, describes the processes required to ensure timely completion
of the project. It consists of activity definition, activity sequencing, activity duration
estimating, schedule development, and schedule control.
4. Project Cost Management, describes the processes required to ensure that the project is
completed within the approved budget. It consists of resource planning, cost estimating, cost
budgeting, and cost control.
18
 CONSTRUCTION MANAGEMENT
5. Project Quality Management, describes the processes required to ensure that the project
will satisfy the needs for which it was undertaken. It consists of quality planning, quality
assurance, and quality control.
6. Project Human Resource Management, describes the processes required to make the
most effective use of the people involved with the project. It consists of organizational
planning, staff acquisition, and team development.
7. Project Communications Management, describes the processes required to ensure timely
and appropriate generation, collection, dissemination, storage, and ultimate disposition of
project information. It consists of communications planning, information distribution,
performance reporting, and administrative closure.

19
 CONSTRUCTION MANAGEMENT
8. Project Risk Management, describes the processes concerned with identifying, analyzing,
and responding to project risk. It consists of risk identification, risk quantification, risk
response development, and risk response control.
9. Project Procurement Management, describes the processes required to acquire goods and
services from outside the performing organization. It consists of procurement planning,
solicitation (tender) planning, solicitation (tender), source selection, contract administration,
and contract close-out.
10. Stakeholders Management, creates positive relationships with stakeholders through the
appropriate management of their expectations and agreed objectives. A stakeholder is any
individual, group or organization that can affect, be affected by, or perceive itself to be
affected by a project.
20
 CONSTRUCTION MANAGEMENT

PROJECT SCOPE SCHEDULE/ TIME COST/BUDGET

21
 CONSTRUCTION MANAGEMENT TRIANGLE

22
By striking a balance between construction cost, project quality and completion schedule, the management team strives to
produce for the owner a project of maximum value within the most economical time frame.
 SCOPE MANAGEMENT:

• Processes required to ensure that project includes all the work required, and
only the work required, to complete the project.
• Managing a project scope is primarily concerned with defining and
controlling what is and is not included in the project.
• Scope management defines how the deliverables of project will be verified
and accepted.
• Project management plan includes the scope management plan which will
define how the scope shall be defined, verified and controlled
23
 SCOPE MANAGEMENT:

Project Scope Management Processes:

• Collect Requirements : the process of defining and documenting
stakeholder’s needs to meet the project objectives.
• Define Scope : the process of developing a detailed description of the
project and the product.
• Create WBS: the process of subdividing the project deliverables and the
project work into smaller, more manageable components.
• Control Scope : the process of monitoring the status of the project and
product scope and managing changes to the scope baseline.
• Verify Scope : the process of formalizing acceptance of the completed
project deliverables. 24
 SCOPE MANAGEMENT considerations::

• Project Description
• Building Codes
• Design Drawings
• Technical Specifications
• Health and Safety Standards
• National and Local Legislation
• Quality Standards
25
 TIME MANAGEMENT considerations:

• Client’s Future Plans

• Material Procurement
• Working Schedules
• National and Local Holidays
• Weather Changes
• Unexpected Circumstances
26
COST MANAGEMENT considerations:

• Technical Specifications
• Contract Type
• Global and Local Economic Conditions
• Material and Workmanship Cost
• Project Changes / Variances

27
 PROJECT COALITION

OWNER / CLIENT ARCHITECT-ENGINEER CONSTRUCTION

DESIGN CONSULTANT MANAGER / CONTRACTOR

28
 PROJECT COALITION:
OWNER / CLIENT

• The main stakeholder of the project; the financer.

• Can be a:
• Private Institutions & Companies & Individuals: Real estate developers; Hospitality industry (e.g.,
hotels, resorts)
• Public Institutions: Government agencies (municipalities, etc); State-owned enterprises (e.g.,
transportation authorities, etc.)
• Not-for-profit Organizations: Non-governmental organizations (NGOs) (e.g., humanitarian
housing, schools)
• PPP – Public/Private Partnerships: A hybrid of public and private sector involvement where
projects are co-funded and managed by both entities (e.g., Infrastructure projects like highways,29
bridges and Social infrastructure like schools, hospitals).
 PROJECT COALITION:
ARCHITECT-ENGINEER
/ DESIGN CONSULTANT

• Designs the project based on local and national specifications

• Tasked with understanding the Client’s needs
• Architects, Civil Engineers, Electrical Engineers and Mechanical Engineers
• May also act in a control position on behalf of the owner in project
organization

30
 PROJECT COALITION:
CONSTRUCTION MANAGER
/ CONTRACTOR
• The main undertaker of the project.
• Can be one single company or multiple companies
• May use subcontractors for faster & more specialized work
• Coordinates the 5 “M”s of the project to reach budget, cost and quality
targets

31
5 M’S OF CONSTRUCTION MANAGEMENT
FOR THE CONTRACTOR

MATERIALS MANPOWER MACHINERY MONEY MANAGEMENT

32
PROCUREMENT: TYPES OF CONTRACTS

Design – Bid – Design & Build Fixed Price

Build Contracts Contracts Contracts

Build – Operate –
Unit Price Cost Plus Fee
Transfer (BOT)
Contracts Contracts
Contracts

33
 CONSTRUCTION
PLANNING

PART 3 AND

COST ESTIMATING
BASICS

34
EXAMPLE OF A SIMPLE CONSTRUCTION PLAN

3.10.2024- WEEK 1 - COURSE OVERVIEW AND CONSTRUCTION MANAGEMENT PRINCIPLES 35

CONSTRUCTION PLANNING MANAGEMENT
PROCESS

1. ESTABLISH 2. IDENTIFY PROJECT 3. DETERMINE 4. DETERMINE 5. PERFORM

OBJECTIVE ACTIVITIES ACTIVITY SEQUENCE ACTIVITY DURATIONS SCHEDULE
CALCULATIONS

6. REVISE AND 7. MONITOR AND

ADJUST CONTROL

36
 TYPES OF PROJECT SCHEDULES

GANTT CHARTS PERT CHARTS CRITICAL PATH

METHOD
37
GANTT CHARTS

38
 RESIDENTIAL VILLA PROJECT OF MR. CHRIS HUMPHREYS AND MS.FILIZ KOVAL
BELLAPAIS, KYRENIA
STAGE IIA CONSTRUCTION WORK SCHEDULE - 15.10.2018
2018 2019
1 2 3 4 5 6 7

SCHEDULE / MONTHS October-18 November-18 December-18 January-19 February-19 March-19 April-19

1.
WEEK

Stage I - Reinforced Concrete Structural Work

GANTT CHARTS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

2. Brickwork and Lentil Work

3. Cement Plaster Work - Interior
4. Cement Plaster Work - Exterior
5. Exterior Heat Insulation
6. Screed Concrete
7. Underfloor Heating Infrastructure
8. Stone Wall Work
9. Window / Door Sills
10. Water Insulation Work
11. Roof Screed Concrete
12. Outdoor Infrastructure Work
13. Swimming Pool Work
14. Garage Building Works
15. Boardex and Gypsum Board Work
16. Electrical Infrastructure Work
17. Mechanical Plumbing Infrastructure Work
18. Site Cleaning and Handover 39
P.O. Box 1070, 8 Ömer Depreli Sokak LEFKOŞA
Prepared by: Menteş ZORBA - Civil Engineer (MSc) - Coordinator
Approved by: Mehmet ZORBA - Civil Engineer - Managing Director NOTES: 1. Critical Path Method has been used to create this project schedule.
PERT CHARTS
(Program Evaluation
and Review
Technique)

40
CRITICAL PATH METHOD (CPM)

41
CRITICAL PATH METHOD (CPM)

42
 CONSTRUCTION PLANNING SOFTWARE

MS PROJECT PRIMAVERA PROJECT PLANNER

– P6

• MS PROJECT
• PRIMAVERA PROJECT PLANNER

43
 COST ESTIMATING BASICS
• THE FIRST STEP OF BECOMING FAMILIAR WITH A PROJECT!
• PROJECT COST SYSTEMS –
• ARCHITECTS ESTIMATES VS. CONTRACTOR’S ESTIMATES
• PRELIMINARY COST ESTIMATES – DESIGN AND PLANNING PHASE
• FINAL COST ESTIMATES – CONSTRUCTION PHASE

44
 QUANTITY SURVEYING

• Using construction working drawings to

create:
• the BILL OF QUANTITIES
• TOTAL PROJECT BUDGET

45
BILL OF QUANTITIES

46
 TYPES OF COSTS
• CONSTRUCTION COSTS
• DIRECT LABOUR COSTS
• MATERIAL COSTS
• EQUIPMENT COSTS
• HEAVY MACHINERY COSTS
• SUBCONTRACTOR COSTS
• SITE MANAGEMENT COSTS – MOBILIZATION, HEALTH AND SAFETY
• INDIRECT LABOUR COSTS - TAXES
• FINANCING COSTS – BONDS, COLLATERALS, LOANS
• MARKUP – CONTINGENCY AND PROFIT
47