CONSTRUCTION METHODS AND EQUIPMENT

CONSTRUCTION PROJECT

PARTIES INVOLVED:

1. OWNER

2. DESIGNER

3. SUPPLIER

4. CONSTRUCTOR

5. END USER

CONSTRUCTION

- Is the step in which plans, specifications, materials and permanent equipment are transformed
by a constructor usually called a contractor, into a finished facility.

CONSTRUCTION CONTRACTS

CONTRACT

- determines the actions of the parties in their dealings with each other. The parties to a
contract are bound to each other for a certain period of time by a unique and exclusive relationship
(privity of contract) they have created for their mutual benefit, which gives them both obligations which
they have agreed to accept so that both may benefit.

CONSTRUCTION CONTRACT DOCUMENTS

-define the agreement between the owner and the contractor. It is a two-party agreement that
does not include the designer

FOUR ATTRIBUTES OF A CONTRACT

TO BE VALID

1. AGREEMENT AND ACCEPTANCE

2. CONSIDERATION

3. CAPACITY

4. LEGAL

COMMON TYPES OF CONTRACTS

1. LUMP SUM CONTRACTS

- Also known as “FIXED FREE CONTRACT”.

 - Contract where there is an agreement in which one party consents to pay another party a set of
an amount for completing the work or providing the goods described in the agreement.

2. UNIT PRICE CONTRACT

- This kind of contract is based on estimated quantities of items included in the project and their
unit prices. The final price of the project is dependent on the quantities needed to carry out the
work.

3.COST-PLUS-FEE CONTRACT

- A contract agreement wherein the purchaser agrees to pay the cost of all labor and materials
plus an amount for contractor overhead and profit (usually as a percentage of the labor and
material cost).

4. INCENTIVE CONTRACTS

-Compensation is based on the engineering and/or contracting performance according an agreed target
- budget, schedule and/or quality.

The two basic categories of incentive contracts are

Fixed Price Incentive Contracts

Cost Reimbursement Incentive Contracts

5. PERCENTAGE OF CONSTRUCTION FEE CONTRACTS

-Compensation is based on a percentage of the construction costs.

-Compensation is based on the engineering and/or contracting performance according an agreed target
- budget, schedule and/or quality.

The two basic categories of incentive contracts are

Fixed Price Incentive Contracts

Cost Reimbursement Incentive Contracts

CONSTRUCTOR SPECIALTIES

1. RESIDENTIAL

2. BUILDING-COMMERCIAL

3. INDUSTRIAL

4. HIGHWAY HEAVY

5. SPECIALTY

1. RESIDENTIAL

2. BUILDING-COMMERCIAL
 3. INDUSTRIAL

4. HIGHWAY HEAVY

5. SPECIALTY

DIVISIONS FOR THE BUDGET

1. MATERIAL

2. LABOR

3. EQUIPMENTS

4. SUBCONTRACTS

5. OVERHEAD

6. PROFIT/RISK

METHODS USED TO REDUCE THE COST OF CONSTRUCTION

1. Design the concrete structures with as many duplicate members as practical in order to permit
the reuse of forms without re building

2. Simplify the design of the structure where possible

3. Design the use of cost-saving equipment and methods.

4. Eliminate unnecessary special construction requirements.

5. Design to minimize labor-intensive activities.

6. Specify a quality of workmanship that is consistent with required project quality.

7. Furnish adequate subsurface information where possible.

8.Refrain from requiring the constructor to assume the adequacy of the design or the responsibility for
information that should be furnished by engineer or architect.

9. Use local materials when they are satisfactory.

10. Write simple, straight forward specifications which clearly state what is expected define either the
results expected or the methods of accomplishing the desired results, but not both.

11. When possible, use standardized specifications which are familiar to the constructors.

12. Hold pre-bidding conferences with constructors in order to eliminate uncertainties.

13. Use inspectors who have sufficient judgment and experience to understand the project and to give
them the authority to make decisions.