Definition of contract

• The agreement between PWD or client and

contractor for execution of work under
specific terms and conditions for certain
amount of money.
 Objects of contract
• The object of a contract is the thing which it is
agreed on the part of the party receiving the
consideration to do or not to do.
 Requirements of valid contract
• Four elements of a valid contract are: Legal
requirements of formation of a contract are:
1) Offer
2) Acceptance
3) Agreement, and
4) Consideration.
Distinction between Agreements and
Contracts
• Offer + Acceptance = Agreement;
• Agreement + Enforceability at law = Contract
 Types of Engineering Contract
• Lump sum contract
• Item rate contract
• Percentage rate contract
• Cost plus Percentage contract
• Cost plus Fixed fee
• Cost plus variable Percentage and Cost plus
variable Fee contract
• Labor contract
Cont….
Other Contracts are
• Demolition contract
• Fee contract,
• Target contract
• Negotiated contract
Types of Engineering Contract
 Types of Engineering Contract
• Lump sum contract
• Item rate contract
• Percentage rate contract
• Cost plus Percentage contract
• Cost plus Fixed fee
• Cost plus variable Percentage and Cost plus
variable Fee contract
• Labor contract
Cont….

Other Contracts are

• Demolition contract
• Fee contract,
• Target contract
• Negotiated contract
 Lump sum contract
• The work gets completed within stipulated
time.
• Profit can be achieved by the contractor by
proper planning.
• Maintaining account is not necessary.
• Cost of project is known before completion.
• Quality of work cannot be maintained.
• Conflicts may occur between and contractor.
• The contractor can get excess profit or excess
loss.
 Item Rate Contract
In this type of contract, the contractor undertakes
the work on the item rate basis. The payment is done
on the basis of quantities of items done and their
respective rates.
The quantities of various items are worked out
by detailed measurements. This type of contract is
also known as unit price contract. The approximate
quantities of all possible items of work are worked
out and are shown in the tender form. Every
contractor quotes his rates against each item are
arrives at the final total amount of the work. This is
the most common type of contract system, which is
widely adopted.
Cont…..
• The work may delay due to delay in supply of
material.
• it is balanced type of contact.
• Maintaining of account is necessary.
• Cost of project is not known before
completion.
• Quality of work is maintained
• Conflicts are not occur between and
contractor.
• The contractor cannot get excess profit or
excess loss
 Percentage Rate Contract
In this form of the contract, the department draws
up the schedule of items according to the description
of items sanctioned in the estimate with the
quantities, units, rates, and amounts shown therein.
When department fix the rate of item it is known as
“Item Rate Contract”.
In the types of engineering contracts, The
contractors are required to offer to carry out the
work at par with the rates shown in the bill of
quantities or percentage above or below the rates
indicated the bill of quantities of the tender. The
percentage above or below or at tendered by the
contractor applies to all the items.
 Cost Plus Percentage Rate Contract
• In this contract the owner pays the contractor
the actual cost of work plus percentage of
cost as his profit
• In this case pre-determined amount in terms
of percentage is give to the contractor.
• The contractor may quote high material rate
so that he may get more profit from overall
work .
• The contractor may get more profit.
 Cost plus Fixed fee
• In this contract the owner pays the contractor
the actual cost of work plus a certain fixed
amount as his fee.
• In this contract pre-determined fee is decided
to be given to the contractor.
• Fixed fee is decided by the owner to be given
to the contractor.
• Profit of contractor depends upon the
completion of work
Cost plus variable percentage and cost plus
variable fee contract
• In this type of contract, the owner pays to
contactor the actual cost of construction plus
an amount of fee inversely variable according
to the increase or decrease of the estimated
cost agreed by the owner and contractor.
Thus, the higher the actual cost, the lower will
be the value of fee and vice versa.
 Labour Contract
Sometimes, the owner is in a position to
purchase the required materials himself In such
cases, he invites tenders only for the labor work.
In These Types of Engineering Contracts, the
contractors put up their rates for the labor per
unit execution of each item. It is necessary to
state that these rates include:
• Use of contractor’s plant and equipment
• All necessary falsework
• Contractor’s supervision
• Contractor’s profit
Cont….
The overall responsibility of the work is of the
contractor, and he has to arrange in such a
way that the proper rate of progress is
maintained for the work. The owner has to
see that the necessary materials are brought
on-site as and when required.
 Target contract
In this types of Engineering Contracts in which
contractor is paid on a cost-plus percent basis of
work performed under this contract. In addition, the
contractor receives per increase or decrease of rate
amount or it affects either a prior agreed of total cost
or target value is paid by measuring the actual work
and billed as per the agreed rate of the item.
Advantages
• The contractor is encouraged to use his skill and
experience in keen’ the cost as low as possible. This
type of contract is profitable to both contractors as
well as to the owner.
 Demolition contract
This contract has been developed specifically
to assist homeowners
and demolition contractors to record
their agreement regarding the demolition of a
home (e.g. following a natural disaster such as
a flood or cyclone).
 Fee contract
A contract under which the services are
provided on the basis of fixed fee rates for
each day worked by experts.
 Negotiated contract

A negotiated contract is one where a specific

firm is targeted, for a variety of reasons, to
perform the contract, even though there is
more than one firm that can perform
the contract. Under usual circumstances, a
competitive tender or proposal would be
issued.
Class & Registration of contractor
 Documents required for registration of
contractor with P.W.D:-
1. Latest income tax clearance certificate.
2. List of tools and plants possess by the contractor.
3. Financial status proof supported by solvency
certificate.
4. Technical staff with their qualification and
experience employed by contractor.
5. Attested copy of partnership deed, in case of
partnership firm and copy of power of attorney.
6. Registration fee required to pay while submitting
the registration form.
• In case of graduated engineers and diploma
holders, there is a provision of getting
registration directly for class VII contractor.

• They will be exempted from payment of

earnest money at the time of submitting
tender, and only one or two percentage of
estimated cost is required to be paid as
security deposit.
Cont.....
• The contractors who desire for upgradation to
higher class should submit the application in
proper form, accompanied with work
experience certificate, works in hand and
other documents.

• The registration is valid for 2 years or 5 years,

hence the contractor is required to get
renewal of registration by submitting proper
form and documents 3 months before the
expiry of validity.
 Classification of Contractor
• The classification of contractor which is based
on the technical support and financial
condition. In this contractors are classified as
A+, A, B, B+, C, D, and E or I, II, III, IV, V, VI and
VII.
Class of contactor Financial limit
I NO LIMIT
II 750 Lacs
III 300 Lacs
IV 150 Lacs
V 50 Lacs
VI 15 Lacs
VII 07 Lacs
VIII 03 Lacs
IX 02 Lacs
 Payment to Contractors
Interim payment, Advance payment,
Secured advance, on account payment,
Final payment, First and Final payment,
Retention Money, Reduced rate payment,
petty advance, Mobilization advance.
Advance Payment
• It is an advance payment made to a
contractor in case where work is done but not
measured. Advance payment is made in
special cases where work is sufficiently
progressed, but measurements can not be
taken for certain valid reasons.
Retention Money

• The department withholds about 10 to 15% of

the monthly payments or periodical payments
from the contractors to have an additional
hold on the contractor so that he will not be
encouraged to abandon the work when
nearing completion, that amount is known as
Retention Money.
Petty Advance

• Petty advance is a small amount of advance

given to the departmental engineer in-charge
for purchasing materials in case of emergency.
• During the execution of work, many times
purchasing of small materials in less quantity
is required in emergency. The amount is less &
is given to the Engineer In charge.
Mobilization Advance

• The amount of money given for them

establishment of the civil engineering projects
like approach roads, labour huts, site office,
water and electricity facility etc. by
department to contractor is called
mobilization advance.
Interim payment
• It is a detailed breakdown, generally prepared
by a contractor, that constitutes an application
for part payment for work undertaken since
the last valuation.
• This usually involves visiting the site and
checking that the work has been carried out,
either by measurement or by
visual inspection.
Secured advance

• It is an advance payment made on the security

of material brought on the site of work, to the
contractor in the interest of work. It is
sanctioned by E.E. to the maximum of 75% of
the value of material.
First and Final Bill

• This form is used for making payment to the

contractor for works and supplies. When a
single payment is to be made on completion of
whole work or supply as the final payment.

• PWD form no. 24 is used for the accounting.

Final Bill Payment

• It is paid after the final completion of the work

• It is paid within 90 days of issue of completion
certificate.
• Checking is done thoroughly.
• Defect liability is binding.
• Basis is second measurement.
Tender
Definition
A Tender is the contractor’s bid in writing offering
to execute the specified work of construction,
supply of materials etc..at the rates and amounts
indicated, within the time limit and under
conditions specified and agreed to.
Necessity
Works, which are to be awarded to
contractors, are published to enable a
sufficient number of interested parties to bid.
The lowest bid is generally accepted, unless
there are good reasons for not doing so. The
process of inviting bids and accepting them is
known as tendering. The bid is usually made
on the tender forms specified by the owner.
 The following tender documents are made available along with
the tender forms to enable contractors to bid for the job.

• Layout plan.
• Set of drawings, including working drawings.
• Detailed specifications or reference to
standard specifications for each item of work
• Schedule of stores to be issued by the owner
indicating the rates and their place and issue.
• Schedule of tools and plant and other facilities
to be made available by the owner, indicating
the conditions, hire changes and the place of
delivery.
Cont…

• General conditions of the contract including

time limits.
• Special conditions of the contract that may
have to be highlighted.
• 8. Amount of Security deposits to be paid
/deducted.
Types of Tender (Local and Global)
• Local tender:
These are the tender notices which are published
locally.

• Global tenders:
These tenders are published in internationally
circulated news papers and any firm or contractor
around the world can fill the tender.
Such tenders are invited for very large projects as
construction of airport, tunnels, express highways
etc.
 TENDER NOTICE
•Points to be included while drafting Tender Notice
•Drafting of Tender Notice.
Meaning of Tender Notice
It is very important & it should stipulate:
• Reasonable time limit for completion of the work.
• It should be in standard form of department.
• It should be displayed in daily local news
papers/notice board.
• It should be in tabular form containing essential
information about name of authority inviting
tender, specification of contractors, name of work
and location, estimated cost, price of tender,
earnest money and security deposit, last date and
accepting authority.
Points to be included while drafting tender notice.

The tender notice should be as short as

possible to save the heavy advertisement
charges. However, tender notice should give
the minimum information about the work.
An ideal tender notice should include following particulars:

1. Name of the authority inviting tender

2. Name of work and its location
3. Estimated cost
4. Time Limit
5. Earnest money along with the tender
6. Availability of data and forms
7. The last date, place and time of tender
8. Right to reject the tender:
TENDER NOTICE
• Tender notice no……. of 2020-21
Sealed item rate tenders are invited in ‘B2’ form
from the registered contractors for the following
work.
1. Name of work: Construction of a Computer centre
for Govt. Polytechnic, Nowgong
2. Estimated cost: Rs. 2.00 Crores
3. Earnest Money Deposit: Rs.2,00,000
4. Security Deposit: Rs.10,00,000
5. Completion period: 18 Months including monsoon
6. Tender fee: Rs. 2000 ( non-refundable)
 Blank tender forms with specifications/ conditions and
any information etc. can be had from the office of the
undersigned on any working day between 11.00am to
3.00pm from 16-12-2020 to 30-12-2020 on payment of
tender fee. The completed tenders should be submitted
on or before 10-01-2021 to the undersigned up to
3.00pm and will be opened on the same day in the
presence of the contractor who may like to attend.
The undersigned reserves the right to reject any or all
tenders without assigning any reasons thereof.

Sd/-
Date: 16-04-2013 Executive Engineer
PIU PWD Nowgong
 Department Of Civil Engineering

Important Terms in
Tendering
Work Organization & Management
Ritesh Agarwal
Time Limit:

10 days for works costing up to 1 lakhs.

2 weeks for works costing from1 to 10 lakhs.
3 weeks for works costing from 10 to 20 lakhs.
Greater than 3 weeks for works costing more than 20 lakhs.

Escalation cost:

For huge work, completion period is long. So cost of materials and labour
become more and more causing uninterest of contractor to carry out the work.
To overcome this drawback, CPWD has provided the price escalation clause to
increase the cost in standard form given by formulae.

Scheduled A, Schedule B & Schedule C

Schedule A: To know the list of material supplied by department

Schedule B: To know the list of items of works to be carried out.

Schedule C: To know the specifications of items of work.

Schedule of Rate: To facilitate preparation of estimate.

Liquidated and unliquidated damages

In the case of contracts, parties might agree to pay a certain amount on

breach of the contract. When such provisions are created in the contract, they
are known as liquidated damage. On the other hand, unliquidated damages
are granted by the courts on the basis of an assessment of the loss or injury
caused to the party suffering such breach of contract.
 Time extension:

Extension of Time (EOT) is a delay which could not be reasonably foreseen at the
time of contract signing. The granting of an Extension of Time relieves the
contractor from liability of damages such as Liquidated Damages from the
original date of contract completion for the period of the claim.
Time extension requests are normally claimed due to the following
circumstances:
 Client Change Order requests for New/Additional Work not included in the
original contract documentation
 Latent Conditions – unknown conditions at the time of contract signing that
affect the time for delivery of the contracted works
 Adverse weather conditions.

Arbitration:
Arbitration is a private process where disputing parties agree that one or several
individuals can make a decision about the dispute after receiving evidence
and hearing arguments. Arbitration is different from mediation because the
neutral arbitrator has the authority to make a decision about the dispute.

Price variation clause:

Considering the continuous fluctuation in material prices and wages of labour,
there is a need to have proper escalation clauses in construction contract. The
basic rationale for a price escalation clause is to compensate the contractor for
increase in construction costs which are beyond the control of both parties
Suspension of Work:
One of the most difficult situations encountered by contractors in their work is
dealing with a Suspension of Work action. This is the suspension of a project
ordered by either a site owner or the government to resolve an issue involving
an aspect of the construction process. In the private sector, a number of
contracts have clauses in place that allow owners to suspend work on a project
under specific circumstances. The ability to suspend work is in most government
contracts.
Suspension of work happens for a number of reasons. This includes:

 Engineering issues
 Changes in scope of work
 Discovery of hazardous materials
 Protection from unsafe conditions
 Not having worker’s compensation insurance for employees

Extra Items:
Extra item is a term that is often used when taking off for a bill of quantities
(BoQ).When taking off for a BoQ, the term 'extra over'/Extra Item can be used to
refer to items that to a certain extent have already been measured, but have
not been priced at the full value of all their labour and materials.
Earnest money ,Security Deposit &
Defect liability period
Earnest money deposit:

It is an assurance or guarantee in the form of

cash on the part of the contractor to keep
open the offer for consideration and to
confirm his intention to take up the work
accepted in his favour for execution as per
terms and conditions in the tender.
Earnest money is 2% to 2.5 % of the estimated
cost of the project.
Security Deposit:
Once it is decided that a Tender is awarded to a
Bidder, he has to deposit a Security Deposit with
the Buyers such that if he does not complete the
task as per the work order, the Buyer can recover
the loss by forfeit his Security Deposit.
For e.g. If a Bidders gets Rs.10 Cr contract to
construct a Bridge within 12 months , than he has
to deposit a Security deposit of 10% i.e. 1 Cr with
Buyers.
Now if he does not complete the bridge on time
or leaves it incomplete, the Department can
forfeit his 1 Cr as penalty.
Defect liability Period:

It is the period during which any defect in the

work is noticed, then the contractor has to
rectify this defect at his cost up to the
satisfaction of the engineer. The period is
usually first monsoon season, or six months
after the virtual completion of the work
whichever is later.
Rejection of Tenders &
Corrigendum
Lowest tender rejection is in the following conditions:
i) When the tender is not submitted in the
particular form sold by the department.
ii) Eastern money required is not enclosed
along with the tender.
iii) When the tender is not signed by the
contractor or by his representative having
power of attorney to sign the document.
iv)When the contractor has put some
condition which are not acceptable to the
department.
Cont….
v) The lowest tender has become bankrupt,
therefore no sufficient amount to finance the
work.
vi) The lowest tender might have earned bad
name in the market. This may be due to non- co-
operation, using bad materials etc.
vii) The contractor may not be having the
necessary experience of the particular work to be
executed.
viii) The contractor may not be having the
qualified engineers on site and lack the special
construction equipment required for completion
of work.
 Corrigendum
• A Corrigendum is a revision of a printed or
published document.
A corrigendum contains corrections that are
larger and more significant than those listed in
an error in printing.
Example

• Say for example, a company or department

has issued a tender for a particular work or
service with all the technical and financial
details. All the important dates and deadlines
have being mentioned in it. Now due to some
or the other reason, if the company feels like
extending the due date or any other date,
they can do so. They need to republish the
tender with the necessary amendments and
this is called as corrigendum.
 Specifications
(Part – I)

Necessity and importance of specifications of an

items, points to be observed in framing
specifications of an item & Legal aspects of
specification
Specifications

• A specification is a specific description of a

particular subject.
• An engineering specification contains detailed
description of all workmanship and materials
which are required to complete an
engineering project in accordance with its
drawings and details.
Purpose of Specification

• The cost of a unit quantity of work is governed by its

specification.
• A work is carried out according to its specification and
the contractor is paid for the same. Any change in
specification changes the tendered rate.
• The necessity of specification is to verify and check the
strength of materials for a work involved in a project.
• Specification is an essential contract document and is
required for Arbitration or court cases.
• Specification is necessary to specify the equipments,
tools and plants to be engaged for a work and thus
enables to procure them beforehand.
Points to be observed in framing Specifications
of an item
Following are the main points which should be kept
in mind while preparing the specifications:

• Quality of Material
• Quality of Workmanship
• Mode of Payment
 The specification of each item should cover:

• General scope of an item

• Materials Required
• Processing of material
• Construction Operations
• Finishing All the elements which are included
in the items.
Cont....
However, to have compact and wide coverage, to the
specification, it is appreciable to apply following tips:
• They should be written in very clear Un ambiguous and
Legal language.
• There should not be any room for doubt and it should
not be double meaning.
• Well known abbreviation should be written. The
specification should be short in length but more in
depth of understanding.
• The information conveyed in the specification should
be accurate to avoid overpayment.
• The conditions and texts should be practicable and
applied easily.
 Legal Aspect of Specification
• The specifications carry more legal strength than
drawings. It means, if there is discrepancy between
the drawing and specifications, whatever is conveyed
by the specifications shall be final and binding.

• The contractor may try to exploite the oversights,

omissions in the drawing and this may result in
unnecessary overpayment to the contractor. In the
event of conflict within the drawings, the large scale
details shall govern the small scale details.
 Specifications
(Part – II)

Types of specification:

Brief and Detailed,

Standard and Manufacturers
specifications
Type of specifications

• Brief specifications

• Detailed specifications

• Standard specifications and

• Manufacturers specifications
Brief specifications
• The general specification used for estimating
the project is the brief specifications.
• The specification which gives the brief
description of various items of work,
specifying the materials, quantities,
proportion of materials and gives general idea
about the whole work.
Detailed specifications
• The specification in which detailed
information of the various quantities of
materials, procedure of workmanship to be
adopted, nature and class of work is
mentioned.
• The details specification describes the item of
work in details, accurately and complete in all
respects in relation to the drawings of the
work.
 Difference between Brief and Detailed specifications

Brief specifications Detailed specifications

• The specification which gives • The detailed specification
the brief description of describes the item of work
various items of work. in details.
• Brief specification specifies • The specification in which
the materials, quantities, detailed information of the
proportion of materials. various quantities of
• It gives general idea about materials, procedure of
the whole work. workmanship to be adopted.
• It gives nature and class of
• The general specification work in detail.
used for estimating the • The details specification
project is the brief describes the item of work
specifications. accurately and complete in
all respects in relation to the
drawings of the work.
Standard specifications

• Detailed specifications for various works are

drawn up by an engineering department and
these specifications are printed and used as a
standard specification.
• Hence most of the items in works are made to
standardized specifications.
Manufacturers specifications

• This type of specifications in which the

properties of products such as strength,
thickness, depth, elasticity, chemical
composition etc. are mentioned.
Specification for external plastering
Material:
Cement
• Ordinary Portland cement shall be used .The cement shall conform
to IS: 269 latest versions.
Sand
• Fine aggregate shall be natural sand obtained from a river bed and
shall conform to 15:383-1 and to the relevant portion of IS: 515-
1959. Sand shall be clean, hard, strong, durable and free from
organic matter, dust, clay, shale, alkali, salts, soft or flaky particles
or other injurious substances.
Water
• Potable water shall be used for mixing the mortar.
Proportion
• Cement and sand shall be mixed in the proportion of one part of
cement to four parts of sand.
Mixing
• Mortar shall be mixed in a mechanical mixer of an approved pattern
at the site of work The drum shall be rotated for a minimum period
of 2 minutes The mortar shall be used within 30 minutes of adding
water or by hand mixing.
Plastering
• The mortar shall be firmly applied on the surface from top to down
and well pressed into the joints. The mortar shall then be rubbed
and leveled with a flat wooden rule until a perfectly plane and even
surface is achieved. All corners shall be finished to their angles,
unless otherwise directed by the engineer: The jambs and reveals
Of door and window openings shall be finished perpendicular to
the sill and lintel bottom. Plastering shall be done in squares or
strips as directed by the engineer. Strips or squares shall be so
formed that day-to-day breaks are made to coincide with
architectural breaks.
Finish
• While the plastered surface is fresh, a thick coat of cement slurry
shall be applied and rubbed smooth.
• All plastered surfaces shall be kept continuously damp for -a period
of 14 days.
Mode of Measurements
• The unit of measurement shall be the square meter as per IS: 1200.
 Department Of Civil Engineering

Time Schedule of works

Work Organization & Management
Ritesh Agarwal
Management
Management is an art of getting things done through and with the people in
formally organized groups. It is an art of creating an environment in which people
can perform and individuals and can co-operate towards attainment of group
goal.
Management personal may be described as the people who design an
organization's structure and determine how different aspects of the organization
will interact.
Management process is a process of setting goals, planning and/or controlling the
organizing and leading the execution of any type of activity, such as: a project In
general an organization's senior management is responsible for carrying out its
management process.

Importance of management of works

1. It helps in Achieving Group Goals - It arranges the factors of production,

assembles and organizes the resources, integrates the resources in effective
manner to achieve goals. It directs group efforts towards achievement of
predetermined goals. By defining objective of organization clearly there would be
no wastage of time, money and effort. Management converts disorganized
resources of men, machines, money etc. into useful enterprise. These resources
are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.

2. Optimum Utilization of Resources - Management utilizes all the physical &

human resources productively. This leads to efficacy in management.
Management provides maximum utilization of scarce resources by selecting its
best possible alternate use in industry from out of various uses. It makes use of
experts, professional and these services leads to use of their skills, knowledge,
and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.

3. Reduces Costs - It gets maximum results through minimum input by proper

planning and by using minimum input & getting maximum output. Management
uses physical, human and financial resources in such a manner which results in
best combination. This helps in cost reduction.
 4. Establishes Sound Organization - No overlapping of efforts (smooth and
coordinated functions). To establish sound organizational structure is one of the
objective of management which is in tune with objective of organization and for
fulfillment of this, it establishes effective authority & responsibility relationship
i.e. who is accountable to whom, who can give instructions to whom, who are
superiors & who are subordinates. Management fills up various positions with
right persons, having right skills, training and qualification. All jobs should be
cleared to everyone.

5. Establishes Equilibrium - It enables the organization to survive in changing

environment. It keeps in touch with the changing environment. With the change
is external environment, the initial co-ordination of organization must be
changed. So it adapts organization to changing demand of market / changing
needs of societies. It is responsible for growth and survival of organization.

6. Essentials for Prosperity of Society - Efficient management lead to better

economical production which helps in turn to increase the welfare of people.
Good management makes a difficult task easier by avoiding wastage of scarce
resource. It improves standard of living. It increases the profit which is beneficial
to business and society will get maximum output at minimum cost by creating
employment opportunities which generate income in hands. Organization comes
with new products and researches beneficial for society.

GANTT BAR CHART

 It was introduced by Henry Gantt around 1910 – 1915.

 GANTT charts have become a common technique for representing the
phases and activities of a project work breakdown structure.
 After the PERT/CPM analysis is completed, the following phase is to
construct the Gantt chart and then to re- allocate resources and
re-schedule if necessary.
 A Gantt chart is a type of bar chart that illustrates a project schedule.
GANTT CHART
 Gantt chart Pros and Cons

• Easy to understand, visual

• Can show how large a staff is needed
• Good for small projects
• Poor at showing precedence relations
• Poor at showing ``practical’’ slack
• Doesn’t deal with variability or uncertainty

Advantages of Gantt chart

There are distinct advantages of a Gantt chart, primarily from project managers’,
project stakeholders’ perspective. It is easy for stakeholder’s to understand the
timeline, it brings clarity to everyone: when a project is going to start and
expected to complete, team can manage its time accordingly, it also establishes
accountability among stakeholders, it enables team to better coordinate project
activities thereby enabling team to improving overall efficiency.

 It is easy to understand
 It gives clarity of dates
 It enables time management
 It brings efficiency
 It ensures accountability in terms of timeline
 It expects coordination among stakeholders in order to deliver things as per
Gantt timeline

Disadvantage of Gantt chart

However Gantt chart has its own limitations. Let’s look at those briefly.

 Tedious if one need to keep it updating regularly

 Can become unmanageable for detailed project plan
 Unclear amount of work expected
 Not easy to view everything on a single paper
 Scheduling

Scheduling is a method that is used to distribute valuable computing resources.

CPM (Critical Path Method) is used to assist the project manager in scheduling the
activities. It assumes that activity durations are known with certainty.
PERT (Program Evaluation and Review Technique) is used to assist in project
scheduling similar to CPM. However, PERT assumes that activity durations are
random variables.

CPM/PERT Network

Each activity (or sub-project) in a PERT/CPM Network is represented by an arrow

symbol. Each activity is preceded and succeeded by an event, represented as a
circle and numbered.

At Event 3, we have to evaluate two predecessor activities – Activity 1-3 and

Activity 2-3, both of which are predecessor activities. Activity 1-3 gives us an
Earliest Start of 3 weeks at Event 3. However, Activity 2-3 also has to be
completed before Event 3 can begin. Along this route, the Earliest Start would be
4+0=4. The rule is to take the longer (bigger) of the two Earliest Starts. So the
Earliest Start at event 3 is 4.
Similarly, at Event 4, we find we have to evaluate two predecessor activities –
Activity 2-4 and Activity 3-4. Along Activity 2-4, the Earliest Start at Event 4 would
be 10 wks, but along Activity 3-4, the Earliest Start at Event 4 would be 11 wks.
Since 11 wks is larger than 10 wks, we select it as the Earliest Start at Event 4.We
have now found the longest path through the network. It will take 11 weeks along
activities 1-2, 2-3 and 3-4. This is the Critical Path.
Advantages of Critical Path Method

 Makes dependencies visible.

 Organizes large and complex project.
 Enables the calculation of float of each activity
 Encourages the project manager to reduce project duration.
 Increases visibility of the impact of schedule revisions.
 Provides opportunities to respond to the negative risk going over-schedule

Activity (Task)

 An activity is any identifiable job which requires time, manpower, material

and other resources to complete.
 The arrow in a network diagram represents activity

Event (Node)

 The beginning or end of the activity is known as event.

 It represents specific time and does not consume time manpower, material,
and other resources.
 Two conventions can be used for developing networks are:

Activity on Arrow (AOA)

 Here arcs represents activities of the project and nodes represents events

Activity on Node (AON)

 Here the nodes represent activities, while arc(arrow) represent the
precedent relations

Dummy Activity

 This doesn’t consume resources like time, cost, manpower, equipment etc.

 But is only used to show relationships.

 It is represented by Dashed Arrow.

Earliest Start time (ES)

 It is the earliest possible time an activity or operation can be started.

 It is equal to the earliest occurrence time of the tail event of that activity.It
is represented either EST or simply ESi

Earliest Finish Time (EF):

 It is the earliest possible time for completion of an activity without delaying

the project completion time.

EF= ES + duration

Latest Finish Time (LF)

 It is the latest time the activity must be completed without delaying project
duration.
 It is equal to the latest occurrence time of the head event.
Latest Start time (LS)

 It is the latest possible time; an activity can be started without delaying the
project.

LS= LF – duration

Numbering the Events Fulkerson’s Rule

 For any activity, the number on the Tail Event should not be greater than
that on the Head Event.
 In other words, the number on Head Event must always be greater than
that on tail Event.
 Department Of Civil Engineering

PERT, Scheduling of work &

Resource Management
Construction Planning & Management
Ritesh Agarwal
PERT – Program Evaluation & Review Technique – It is generally used for those
projects where time required to complete various activities are not known as a
priori. It is probabilistic model & is primarily concerned for evaluation of time. It is
event oriented.

The main objective in the analysis through PERT is to find out the
completion for a particular event within specified date. The PERT approach takes
into account the uncertainties. The three time values are associated with each
activity.

COMPARISON BETWEEN CPM AND PERT

PERT CPM
1. PERT is used for non-repetitive jobs 1. CPM is used for repetitive job like
like planning the assembly of the space. building a house
2. it is a probabilistic model. 2. It is a deterministic model.
3. It is event-oriented as the results of 3. It is activity-oriented as the result or
analysis are expressed in terms of calculations are considered in terms of
events or distinct points in time activities or operations of the project.
indicative of progress.
4. It is applied mainly for planning and 4. It is applied mainly for construction
scheduling research programmes. and business problems.
5. PERT incorporates statistical analysis 5. CPM does not incorporate statistical
and thereby determines the analysis in determining time estimates,
probabilities concerning the time by because time is precise and known.
which each activity or entire project
would be completed.
6. PERT serves as useful control device 6. It is difficult to use CPM as a control
as it assists management in controlling device for the simple reason that one
a project by calling attention to such must repeat the entire evaluation of
delays the project each time the changes are
introduced into the network.
 1. Optimistic time – It is the shortest possible time in which the activity can
be finished. It assumes that everything goes very well. This is denoted by t0.

2. Most likely time – It is the estimate of the normal time the activity would
take. This assumes normal delays. If a graph is plotted in the time of completion
and the frequency of completion in that time period, then most likely time will
represent the highest frequency of occurrence. This is denoted by tm.

3. Pessimistic time – It represents the longest time the activity could take if
everything goes wrong. As in optimistic estimate, this value may be such that only
one in hundred or one in twenty will take time longer than this value. This is
denoted by tp.

In PERT calculation, all values are used to obtain the percent expected value

4. Expected time – It is the average time an activity will take if it were to be

repeated on large number of times and is based on the assumption that the
activity time follows Beta distribution, this is given by te

te = ( t0 + 4 tm + tp ) / 6

The variance for the activity is given by

σ 2 = [(tp – to) / 6] 2

Earliest expected event time

The earliest event time represents the earliest time an event can possibly
begin; conventionally, it is zero for the first event.

Latest allowable occurrence time

The Latest allowable occurrence time is the latest time by which an event
must occur to keep the project on schedule (without delaying the project).
 Slack of Event

The slack for an event is the difference between its Latest Occurrence Time
and Earliest Occurrence Time. It gives the amount of time the occurrence of the
event can be delayed without delaying the project's completion time.

LOT - EOT = Slack

Critical Path

A path in a network diagram is a continuous chain of activities that

connects the initial event to the terminal event. The length of a path is the sum of
the durations of all the activities those lay on it. Critical Path defines the path
consisting of critical activities only. It is the longest among all the paths.
After preparing the network diagram and indicating the activity times on it,
we can enumerate all the possible paths for the identification of critical path.

An activity is critical if a delay in its start results in a delay in the completion

of the entire project, otherwise it will be called a non-critical activity.
 Simple numerical problems on PERT

Example 1

Task: A B C D E F G H I J K
Least time: 4 5 8 2 4 6 8 5 3 5 6
Greatest time: 8 10 12 7 10 15 16 9 7 11 13
Most likely time: 5 7 11 3 7 9 12 6 5 8 9

Find the earliest and latest expected time to each event and also critical path in
the network.
Example 2

A project has the following characteristics

 Important Terms

Resource Allocation

Resource allocation is the process of assigning and managing assets in a

manner that supports an organization's strategic goals.
When you're allocating resources effectively, it takes into account actual
availability—not what's written on paper.
For example, rather than calculating 40 hours per week per full-time employee,
you consider potential sick days, vacation time, and other work tasks on their to-
do list.

Resource Smoothing

Resource Smoothing is a resource optimization technique in which the

Project Manager adjusts the timing of different activities so that the requirement
for resources does not exceed a certain pre-defined limit.

Resource leveling for Human Resource

Resource leveling is a project management technique that involves

resolving over allocation or scheduling conflicts to ensure a project can be
completed with the available resources. Resources include the time, materials, or
tools needed to complete a project.
To perform resource leveling, start by creating a baseline start and end
date, with flex deadlines in between. Schedule the higher priority activities first,
followed by the lower priority activities. Priorities here are determined by the
total float value of each activity.
Resource leveling is used when there is resource scarcity. This includes
when a resource is not available for a certain date range, when it has to be shared
with other teams or when the demand exceeds the supply. As previously
mentioned, resource leveling works best within the CPM model, while also
considering the triple constraints so as to help clean up a backlog of projects.
 Project Costs

Overall, project costs are the total funds needed to monetarily cover and
complete a business transaction or work project.

Project costs involve:

1. Direct costs – Direct costs are those directly involved with, and necessary in
order to complete said project.
2. Indirect costs – Indirect costs for a project are costs which do not directly
lead to project completion but are still vital for the company or individual
working on said project. As such, they are a part of individual project costs.

Direct costs include the cost of:

 Professionals working on the project – i.e. company employees or

outsourced contractors and freelancers
 Equipment – i.e. the tools and machines the employees, contractors, or
freelancers use to finish the project
 Materials – i.e. physical materials (that are not tools or machines) needed
to finish the project
 Project management tasks – i.e. all tasks meant to facilitate project
completion before a given time, and according to specific requirements
 Engineering tasks (if needed) – i.e. all research, design work, and
installation of equipment made in order to finish the project
 Transportation (if any) – i.e. custom rates, bringing the finished product to
retailers, etc.

Indirect costs include the cost of:

 Operating overhead expenses, i.e. office rent, utilities, insurance, general

office equipment, and materials
 Target annual salary, i.e. the clean profit the company or individual wants
to make, in addition to the money needed to cover overhead and other
expenses
 Cost vs. Time

In the construction projects, time and cost have a very close relationship.
That relationship can be illustrated in a linear fashion, which means for the same
type of project, the greater the volume of work the greater the cost and time are
required in order to complete the whole project.
 Project Crashing

Crashing of the project means to reduce the project completion time by

adding extra resources to it. The project can be crashed by reducing the normal
completion time of critical activities which is called crashing of activities.

This can be obtained by increasing the resources to perform them. Addition

of resources means addition of extra cost for project completion. The addition of
extra cost and so resources is justified only up-to certain limit that can be
determined by project time-cost made off.

In CPM, time is related to cost and the object is to develop an optimum time-cost
relationship.

• The overall project duration can be reduced by reducing the duration of only the
critical activities in the project network. The durations of such activities may be
reduced in two ways.
(a) By deploying more resources for the early completion of such activities.
(b) By relaxing the technical specifications for such activities.

• In whole of CPM Cost Model, we will be assuming that project duration is

reduced by deploying more resources on critical activities.

• In CPM, there are two time and cost estimates for each activity: 'normal
estimate' and crash estimate'.In the normal estimate, the emphasis is on cost
with time being associated with minimum cost. The'crash' estimate involves the
absolute minimum time required for the job and the cost necessary to
achieve it. Here the emphasis is on 'time'.
  Normal time (tn): Normal time is the standard time that an estimator
would usually allow for an activity.
 Crash time (tc): Crash time is the minimum possible time in which an
activity can be completed, by employing extra resources. Crash time is that
time, beyond which the activity cannot be shortened by any amount of
increase in resources.
 Normal cost (Cn): This is direct cost required to complete the activity in
normal time duration.
 Crash cost (Cc): This is the direct cost corresponding to the completion of
the activity within crash time.

The straight line or segmented approximation of the direct cost curve is

helpful in carrying out the project cost analysis. In such analysis, the cost slope is
used.
Cost Slope

 The cost slope is the slope of the direct cost curve, approximated as straight
line. It is defined as follows

 Crashing of critical activity is started in systematic manner i.e., starting with

that activity which has the least cost slope.

Total Project Cost and Optimum Duration

 The total project cost is the sum of the direct cost and the indirect costs.

 We find that the minimum total cost is obtained at duration known as the
optimum duration. The corresponding cost is known as the minimum cost.
If the project duration is increased, total cost will increase, while if project
duration is decreased to the crash value, project cost will be the highest.

 Crashing of non-critical activities does not serve any purpose as they do not
control the project duration and completing them earlier does no benefit
rather it increases the project cost.
Material Management

 Ordering Cost- Ordering costs are the costs related to the preparation of a
supplier’s order, including the cost of placing an order, inspection costs,
documentation costs, and others.
Typically, ordering costs include expenses for a purchase order, labor
costs for the inspection of goods received, labor costs for placing the goods
received in stock, labor costs for issuing a supplier’s invoice and labor costs
for issuing a supplier payment.

 Inventory carrying cost-Inventory carrying cost is the expense of keeping

items in stock before you use them to fulfill orders and turn into liquid
capital. This cost is typically expressed as a percentage of the total value of
inventory.
On other words Carrying cost is the amount that a business spends
on holding inventory over a period of time. It is the cost of owning, storing,
and keeping the items in stock.
The four main components of carrying cost are:
1. Capital cost
2. Inventory service cost
3. Inventory risk cost
4. Storage space cost

 Economic order quantity-Economic order quantity (EOQ) is the ideal order

quantity a company should purchase to minimize inventory costs such as
holding costs, shortage costs, and order costs.
On other words the economic order quantity (EOQ) is a company's
optimal order quantity for minimizing its total costs related to
ordering, receiving, and holding inventory.
Various Accounts Forms/ Terms
and their uses
Measurement Book, Nominal Muster Roll,
Imprest Cash, Indent, Invoice, Bills, Vouchers,
Cash Book, Temporary advance
Measurement Book
It is a book in which measurements of all
works and supplies are recorded in the
measurement book and payment of all works
is made on the basis of measurement
recorded.
Purpose
1) To record measurement of all works
2) To record measurement of all supply of
material.
3) To make payment on the basis measurement
record.
Nominal Muster Roll
It is the form which provides (Form no.21)
columns for recording attendance of labour for
a month.
Uses of nominal muster roll in government
• Recording the labours
• Finding total no. of labours.
• For payment of labours.
• To know labour cost.
• To know labour capacity of work.
• To have financial record for labour cost.
Imprest Cash
In PWD individual officers are give a permanent
advance for petty expenses to make payment in
connection with the government work. From this
amount they can pay transport charges,
miscellaneous payment of materials and they are
required to keep the account of such expenses in
separate cash book known as Imprest Cash account.
Receipts are entered in red ink while expenditure
items are recorded in blue ink. Every payment is to
be supported by proper voucher. The account of
imprest is to be submitted to divisional officer from
time to time.
Indent
It is a material form prepared by SDO or AE in
charge of civil work to issue materials from stock.
It is in triplicate form- counter foil, indent and
invoice.
Invoice
It is one part of indent used for receipt of issued
material. Initially, it is sent in blank format to
issuing officer
Bills
Bill is the account of work done or the supply of
material and amount due.
Vouchers
Voucher is a written document having details and
kept as record as a proof of payment.
 Difference between Bill & Voucher

Bill Voucher
• Bill is a detailed account • Voucher is legal receipt
of claim for works done for proof against
or supply made. payment made.

• Bill includes quantities, • Voucher contains brief

rates and amount due. description of work or
item.
Cash book
• It is the book in which all the transactions
related to actual receipt and payment of cash
is recorded in a register made by PWD
Account Form no. 1

1) The transactions related to the receipt of

cash are recorded in the cash book.

2) The transactions related to the payments of

cash are recorded in the cash book.
Temporary advance

An accountable advance that substitutes for

credit or other payment arrangements that
would ordinarily be used under similar
circumstances (e.g., advancing cash to a
construction contractor for materials received
on site instead of only paying for work that
has already been erected, inspected,
accepted, and invoiced).
 Department Of Civil Engineering

Daily Diary
Annual & Special Repair
Work Organization & Management
Ritesh Agarwal
 Daily Diary

Following are some of the major uses and benefits of having a well-maintained
Daily Diary.

 The document is used to keep record of daily activities on projects. Such

information are crucial for future uses and if not recorded properly on daily basis
can easily go missing over the period of time.
 A well-maintained diary can reduce much effort for quantifying any future claims
by providing information of day-to-day activities.
 With having the record of each day, such documents can facilitate in claims
settlement, disputes resolution, and cost compensations.
 They can be used as evidence of any additional costs and delay events during the
claims settlement and disputes resolution procedures.
 They can be used for future planning and forecasting of new projects and similar
activities as they contain the information of time and resources for such activities.
 They can help in costing and budgeting of new projects more accurately.

Purpose of the Daily Diary:

 To record the actual works done on site.

 To record the actual resources deployed for each type of works.
 To record the weather and climatic conditions.
 To record the working hours for each shift and areas.
 To record any delays, stoppages and other important events etc.
Annual Repairs

This maintenance service is carried out to maintain the aesthetics of buildings and
services as well as to preserve their life, some works like white washing,
distempering, painting, cleaning of lines; tanks etc. are carried out periodically.
These works are planned on year to year basis.

The works of periodical nature like White washing, colour washing, distempering,
painting etc. are called Annual Repair works and these are generally undertaken;
through system of contracts.

The periodicity of applying white washing and colour washing for a building has
been laid down by the Government. The periodicity is two years for white
washing and colour washing and three years for painting. In addition, works such
as patch repair to plaster, minor repairs to various items of work, replacement of
glass panes, replacement of wiring damaged due to accident, replacement of
switches, sockets tiles, Gap filling of hedges/perennial beds,
Replacement/Replanting of trees, shrubs, painting of tree guards, planting of
annual beds and trimming /pruning of plants etc., which are not emergent works
and are considered to be of routine type, can be collected and attended to for a
group of houses at a time and particular period of financial year, depending upon
the exigency. Such works can be done under day to day repair also. The yard stick
for annual repairs covers both the above facilities
Special Repairs

Special repairs of building are undertaken to replace the existing parts of buildings
and services which get deteriorated on ageing of buildings. It is necessary to
prevent the structure & services from deterioration and restore it back to its
original conditions to the extent possible.

As the building ages, there is deterioration to the various parts of the building and
services. Major repairs and replacement of elements become inevitable. It
becomes necessary to prevent the structure from deterioration and undue wear
and tear as well as to restore it back to its original conditions to the extent
possible. The following types of works in general are undertaken under special
repairs: -

I. White Washing, Colour washing, distempering etc., after completely scrapping

the existing finish and preparing the surface afresh.
II. Painting after removing the existing old paint from various members.
III. Provision of water proofing treatment to the roof. All the existing treatments
known are supposed to last satisfactorily only for a period of about ten years.
IV. Repairs of internal roads and pavements.
V. Repairs/replacement of flooring, skirting, dado and plaster.
VI. Replacement of doors, window frames and shutters, and replacement of door
and window fittings.
VII. Replacement of water supply and sanitary installation like water tanks, WC
cistern, Wash basins, kitchen sinks, pipes etc..
 Department Of Civil Engineering

Construction Management,
Organization & its
terminologies
Construction Planning & Management
Ritesh Agarwal
Construction Management

Construction Management is defined as the management of activities that are

over and above the normal architectural and engineering services conducted during
the pre-design, design and construction phases of a project that contribute to the
control of cost and time.

Management process is a process of setting goals, planning and/or controlling

the organizing and leading the execution of any type of activity, such as: a project.

Main Objectives of Construction Management

An important part of any project, quality construction management helps

ensure construction projects remain on time, on budget, and meet all goals for
safety, scope, function, and quality. In order to ensure success, the Construction
Manager must implement a variety of specialized project management methods.

Functions of Construction Management

The five integral functions of management to run a highly successful enterprise are:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

1. Planning
 It is the basic function of management. It deals with chalking out a future
course of action & deciding in advance the most appropriate course of actions
for achievement of pre-determined goals.
 Thus planning is a systematic thinking about ways & means for
accomplishment of pre- determined goals. Planning is necessary to ensure
proper utilization of human & non-human resources.
 It is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

2. Organizing
 It is the process of bringing together physical, financial and human resources
and developing productive relationship amongst them for achievement of
organizational goals. To organize a business involves determining & providing
human and non-human resources to the organizational structure.
Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities
 Assignment of duties
 Delegation of authority and creation of responsibility.
3. Staffing
 It is the function of manning the organization structure and keeping it
manned. Staffing has assumed greater importance in the recent years due to
advancement of technology, increase in size of business, complexity of human
behavior etc.
Staffing involves:

 Manpower planning
 Recruitment, selection & placement
 Training & development
 Remuneration
 Performance appraisal
 Promotions & transfer.
4. Directing
 It is that part of managerial function which actuates the organizational
methods to work efficiently for achievement of organizational purposes.
Direction is that inert-personnel aspect of management which deals directly
with influencing, guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals.
Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication.
5. Controlling
 The purpose of controlling is to ensure that everything occurs in conformities
with the standards. An efficient system of control helps to predict deviations
before they actually occur. Therefore controlling has following steps:
 Establishment of standard performance.
 Measurement of actual performance.
 Comparison of actual performance with the standards and
finding out deviation if any
 Corrective action.
Types of Construction

 Light Construction
 Heavy Construction
 Industrial Construction

Light Construction

light construction is the construction or renovation of building foundations,

columns and walls, lintels, floors, roofs, lifts/stairs, finishing work (painting and
plastering), building services (sanitation, electrical works, drainage and water
supply) and external works (external walls and/or fencing). According to “Building
Construction,” buildings are broadly divided into the superstructure, the
substructure and the plinth.

Heavy Construction

Civil or heavy construction involves adding infrastructure to local or national

construction. It includes the construction of harbors, railroads, golf courses,
dams, earthwork projects, bridges, canals, roads and highways. Civil construction
is divided into various disciplines, including structural engineering,
environmental engineering, urban engineering, geotechnical engineering,
material engineering, coastal engineering and water-resources engineering.

Industrial Construction

Industrial construction is the construction of cement, chemical, production-

process lines, manufacturing facilities, power, gas, oil and paper industries.
Sub-processes include the assembly of heavy equipment and its installation,
pipe installation, rigging and scaffold erection. Industrial construction projects are
employed by various industries, such as petroleum, power generation, medicine and
chemical. Highly specialized teams transition computer- or paper-based blueprints
and processes into reality. Industrial construction teams work closely with cost
engineers, accountants and mortgage bankers.
Stages in Construction from Conception to Completion
The Construction Process is composed of six distinct stages, which are:

 Concept
 Contracts and Bid Documents
 Bidding
 Construction
 Construction Payments
 Completion

1. Concept
All construction projects begin with planning and design also referred to as
"architectural programming." Numerous overlapping steps occur during this
conceptual or design phase, prior to actual construction of the project.

2. Contracts and Bid Documents

In order to solicit construction bids, the builder must provide potential
bidders with working drawings and plans for the proposed structure, as well as
project specifications, the terms of which are spelled out in contracts.

3. Bidding

The third stage of the construction process is bidding. Once an owner

determines that a project is feasible and that construction financing is available, the
owner will solicit bids or proposals from general contractors and/or specialty
contractors. Owners generally use trade publications and newspapers in order to
invite contractors to bid on a construction job. A copy of "The Notice to
Contractors" will be shown in the project's specifications, providing contractors with
the bidding procedures.
4. Construction (Field Work)

The fourth stage of the construction process, called fieldwork, is the actual
construction of the project. Fieldwork is broken down into building permits,
subcontractors, scheduling subcontractors, shop drawings, project submissions, and
change orders.

5. Construction Payments

The fifth stage of the construction process is the construction payments

stage. All construction contracts extend over a period of time. The order of any
business operation is to collect money as soon as work is complete. When a
contractor completes a prescribed amount of work, the owner pays the contractor
for the completed work.

6. Completion

The final phase of the construction process is known as the completion stage,
and it readies the building for occupancy.
 CONSTRUCTION TEAM

Architect

The Architect develops the buildings’ design, taking the Client’s brief and
combining it with the advice of the Specialist Consultants. This then has to be
developed to meet the requirements of the Building Regulations and increasingly
sustainability. Architects have significant involvement in product selection.

Contractor

The Contractor oversees and manages the construction of the building for the
Client, following the Architect and Engineers’ designs. The work is delivered under a
contractual agreement. The Main Contractor will select Sub- contractors based on
the capability, availability and price. Sub-contractors include many specialist trades.

Engineer

Working with the architect will be a number of engineers that are responsible
for structural, mechanical and electrical design. The Structural Engineer is a key
member of the Project Team. Structural Engineers design the skeleton or structure
of the building, enabling Architects to focus their talents on creating a design that
satisfies their client’s demands.
The Role of a Construction Project Manager

A construction project manager is responsible for planning, coordinating, budgeting

and supervising projects from the beginning to the end. to take care of the following
actions:-
 Put together the budget and negotiate cost estimates
 Arrange the work timetables
 Choose the most efficient construction method and strategies
 Stay in touch with the clients for work or budget related issues
 Discuss about technical and contract details with workers and other
professional parties
 Keep an eye on the personnel in construction onsite
 Cooperate with building and construction specialists.
 Department Of Civil Engineering

Organization & its

Objectives, Principles,
Classification & DPR
Construction Planning & Management
Ritesh Agarwal
Organization

Organizing is the function of management which follows planning. It is a

function in which the synchronization and combination of human, physical and
financial resources takes place. All the three resources are important to get results.
Therefore, organizational function helps in achievement to object related to the
project.

Principles of Organization

1. Span of Management: Span of control (or span of management) is the

number of subordinates who report directly to a manager or leader.

2. Scalar Principle: The scalar principle is the principles of organization

that authority and responsibility should flow in a clear, unbroken line
from the highest to the lowest manage.

3. Unity of Command: Unity of command is another classical

management principle which recommends that every individual in the
organization should report to a single boss.

4. Delegation of Authority: Authority refers to the rights inherent in a

managerial position to give orders and expect the orders to be obeyed.
Delegation of authority is the process by which managers allocate
authority downward to the people who report to them.

5. Principle of Division of work: As per the principle of division of work, a

given work should be divided into many parts. It means that every task
should be divided into small groups or units so that it can be performed
in a competent manner. The principle focuses on work specialization.

6. Principle of Separation of work: The works carried out by an individual

or a team should be checked and controlled by people other than those
who executed the work.
Types of Organization

1. Line Organization.
2. Line and staff Organization.
3. Functional Organization.

Line Organization
Line organization is the most oldest and simplest method of administrative
organization. According to this type of organization, the authority flows from top to
bottom in a concern. The line of command is carried out from top to bottom. This is
the reason for calling this organization as scalar organization which means scalar
chain of command is a part and parcel of this type of administrative organization. In
this type of organization, the line of command flows on an even basis without any
gaps in communication and co-ordination taking place.
Line and staff Organization
Line and staff organization is a modification of line organization and it is more
complex than line organization. According to this administrative organization,
specialized and supportive activities are attached to the line of command by
appointing staff supervisors and staff specialists who are attached to the line
authority.
Functional Organization
In this type of organization, the whole work is divided in such a way that each
person has to perform a minimum number of functions and is responsible for those
functions.
Features of Functional Organization:

1. The entire organizational activities are divided into specific functions such as
operations, finance, marketing and personal relations.
2. Complex form of administrative organization compared to the other two.
3. Three authorities exist- Line, staff and function.
4. Principle of unity of command does not apply to such organization as it is
present in line organization.
Detailed Project Report (DPR)

In a Detailed Project Report, the project plan is elaborately laid out explaining
the idea, the various functions required to be performed, estimation and allocation
of resources required supported by a Project Feasibility report. It’s ideally a final set
of documents and blueprints before project execution that also focuses on the
forecasted Return on Investment, risks and mitigation measures. A Detailed Project
Report traditionally includes the following in order:

 Summary of the project idea and its background.

 Background of the company, management, and stakeholders involved.

A detailed project report must include the following information

 Brief information about the project

 Experience and skills of the people involved in the promotion of the project
 Details and practical results of the industrial concerns of the promoters of the
project
 Project finance and sources of financing
 Government approvals
 Raw material requirement
 Details of the requisite securities to be given to various financial
organizations
 Other important details of the proffered project idea include information
about management teams for the project, details about the building, plant,
machinery, etc.

A DPR acts as a ladder towards success to make your project reach great heights.
If the project report is prepared by putting a tremendous amount of effort into
details, you will surely get good results later.
Administrative approval-
For any work or project require by a dept. an approval of the competent
authority of the dept. w.r.t. Cost is necessary at the first instance this approval
authorizes the engg. dept. to take up the work in hand.
The administrative approval denotes the formal acceptance of the concerned
dept. for the said proposal. Engg. Dept. prepares the preliminary plans and
approximate estimate and submits to concerned dept for administrative approval.
The Engineering Dept. takes up the work and prepares plans, detail designs
and estimates and then executes the work only after administrative approval is
given by concerned dept.

Budget provision-
For any work or project it is necessary to provide finance oroginally the
estimates are prepared by PWD and sent to the secretary of the dept. and
consequently to the finance dept,.
The assurance of finance dept. for allotment of funds to the estimates, fully or
partly, submitted above in writing is known as budget provision. Engg. Dept takes up
execution

Technical Sanction:-
After obtaining the approval a detailed estimate and detailed drawings are
prepared and sanctioning of competent authority is obtained such sanctioning is
termed as technical sanctioning.
 Piece (Petty) Work Method

• For small/routine works of less cost this

method is advisable. The contractor agrees to
execute the work at certain agreed rates
without consideration of total quantity or
duration .
• Piece work method is the method of valuing
work on the basis of quantity of work actually
done by the petty worker.
• This method is suitable where accurate
measurements are possible to take
• Payment is done on the actual measurement
of work
• This method is suitable for:
. Maintenance work
. Works like earth work for road, canal etc.
 Rate List Method
• Works costing up to rs.25000/- can be
carried out by rate list method.

• PWD has list of petty contractors to carry

out small jobs of repair /maintenance. An
undertaking is taken from petty
contractors to under take a work at
specific conditions.
• For carrying out small quantity of work (Petty
Work) this method is adopted.
• Special repairing work is generally carried out by
this method.
• In rate list method as the work is small hence
tender are not published in news papers.
• In rate list method quantity of work is not known
hence generally agreement is made between
owner and contractor.
• A list of petty work is been displayed in the office
of executive engineer.
• Large number of small work can be allotted at a
time.
 Day work Method
• Day work method is the method of valuing
work on the basis of actual material and
labour used.
or
System of costing for valuing a work which can
not be measured accurately on the basis of
materials / labour used for completion.
• This method is suitable for:
– Decorative work
– Artistic work
– Special work like under water works.

The basis of payment will be actual material cost,

labour cost per day.