CONSTRUCTION MANAGEMENT

2019

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 PROJECT PLANNING AND SCHEDULING
Two major categories or method exist for project scheduling and planning :

 Bar-chart method

 Network-diagram method

BAR-CHART METHOD:

In Bar Chart method, the activities or events are represented by a bar, the length of which

represent the estimated duration of the activities.

DISADVANTAGE OF BAR-CHART METHOD

 They do not lend themselves to planning revision

 they do not highlight interdependence of one activities with others in the same program

i.e. they do not show which activities must finish before another can start

Project planning and scheduling is now one aspect of the general planning activities that forms the

core of the operation of manager’s areas of responsibilities

(Programme Evaluation Review Technique (PERT)

PERT is a programme designed for Project Scheduling & Management
1. INTRODUCTION
CPM (Critical Path Method) and PERT (Programme Evaluation Review Technique) are
project management techniques, which have been created out of the need to plan,
schedule and control complex projects. PERT was devised for the missile program by the
Program Evaluation Branch of the Special Projects office of the U.S. Navy.

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1.1 CPM/PERT
CPM/PERT is sometimes called Network Analysis

When CPM was first introduced, unproductive time was reduced from 125 hours to 93 hours.

1.2 Planning, Scheduling & Control

Planning, Scheduling (or organizing) and Control are considered to be basic Managerial functions,

and CPM/PERT has been rightfully accorded due importance. It was found that PERT/CPM provided

a focus around which managers could brain-storm and put their ideas together. It proved to be a

great communication medium by which thinkers and planners at one level could communicate

their ideas, their doubts and fears to another level. Most important, it became a useful tool for

evaluating the performance of individuals and teams.

There are many variations of CPM/PERT which have been useful in planning costs, scheduling

manpower and machine time.

CPM/PERT is designed to provide solutions to following 6 major constructions questions/ problems

 How long will the entire project take to be completed?

 What are the risks involved?

 Which are the critical activities or tasks in the project which could delay the entire project if

they were not completed on time?

 Is the project on schedule, behind schedule or ahead of schedule?

 If the project has to be finished earlier than planned, what is the best way to do this at the

least cost?

1.3 The Framework for PERT and CPM.

Essentially, there are six steps which are common to both the techniques. The procedure is listed

below:

 Define the Project and all of its significant activities or tasks. The Project (made up of several

tasks) should have only a single start activity and a single finish activity.

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  Develop the relationships among the activities. Decide which activities must precede and
which must follow others.
 Draw the "Network" connecting all the activities. Each Activity should have unique event
numbers. Dummy arrows are used where required to avoid giving the same numbering to two
activities.
 Assign time and/or cost estimates to each activity
 Compute the longest time path through the network. This is called the critical path.
Use the Network to help plan, schedule, monitor and control the project.
The Key Concept used by CPM/PERT is that a small set of activities, which make up the longest path
through the activity network control the entire project. If these "critical" activities could be identified
and assigned to responsible persons, management resources could be optimally used by
concentrating on the few activities which determine the fate of the entire project.
Non-critical activities can be replanned, rescheduled and resources for them can be reallocated
flexibly, without affecting the whole project.
Five useful questions to ask when preparing an activity network are:
 Is this a Start Activity?
 Is this a Finish Activity?
 What Activity Precedes this?
 What Activity Follows this?
 What Activity is Concurrent with this?
Some activities are serially linked. The second activity can begin only after the first activity is
completed. In certain cases, the activities are concurrent, because they are independent of each other
and can start simultaneously. This is especially the case in organizations which have supervisory
resources so that work can be delegated to various departments which will be responsible for the
activities and their completion as planned.
When work is delegated like this, the need for constant feedback and co-ordination becomes an

important senior management pre-occupation.

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Network-diagram method

ACTIVITY PREDECESSOR DURATION (DAYS)

A 5
B A 4
C A 3
D A 2
E B 8
F C 7
G D 6
H E,F,G 4

CRITICAL PATH
C3
1 2 4 6 7

1 A-B-E-H 21
2 A-C-F-H 19
3 A-D-G-H 17

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 ACTIVITY PREDECESSOR DURATION (DAYS)
A 0 8
B 0 10
C 0 8
D A 10
E A 16
F D,A 17
G C 18
H C 14
I F,G 9

1 Draw the Network diagram

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3 Identify the critical path

1
35,44
5 6
35, 44

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 ACTIVITY PREDECESSOR DURATION (DAYS)
A 3
B A 4
C A 2
D B 5
E C 1
Activity F C 2
ES Ef
G D,E 4
Ls Durability Lf H F,G 3

7 D 12
12 G 16
3 B 7
7 5 12
12 4 16
3 4 7

16 H 19
16 3 19
5 E 6
0 A 3
1 1 12
0 3 3 1

3 C 5
9 2 11
5 F 7
14 2 16

CRITICAL PATH

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Industry
What is Industry?

INDUSTRY is a term for either

i) all economic activities (pecuniary, commercial, profitmaking)
involved in the manufacturing of raw materials into goods and
products.
ii) a manufacturing companies of any kind of economic production
(manufacture, construction, invention or fabrication)

Industry Classification Systems:

Industry is systematically classified into two
A) classification by Government. Government divides industry into sectors:
1. Primary sector
 Raw material extraction industries such as Mining and Agriculture (Farming)
2. Secondary sector
 Construction and manufacturing sector
3. The tertiary sector
 Intellectual sector .This is the sector that deals with services such as law and medicine
and distribution of manufactured goods
4. Quaternary sector
 Though relatively new addresses and focuses on technological Research and
Development (R&D) such as computer programming
5. Quinary sector
 Takes care of non – profit activities

B) Classification By Product :
industry is also classified by product:

 Chemical industry
 Food industry
 Music industry
 Software industry
 Entertainment industry
 Fashion industry
 Paper industry
 Oil industry

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  Fish industry
 Textile
 Petroleum industry

Industrial Revolution (I.R)

Industrial Revolution denotes the transition to new manufacturing processes. This took
place in the period from about 1760 to about 1840. This change included going from hand
production methods to machines, new chemical manufacturing and iron production
processes, the development of machine tools and the rise of the factory system of
production .
Therefore Industrial Revolution (I .R): Could be defined as the change that brought about
improvement over manual work by means and use of machine engendering goods of
higher quality and greater production .
Some economists say that the major impact of the Industrial Revolution was that
the standard of living for the general populace began to increase consistently for the first
time in history, although others have said that it did not begin to meaningfully improve
until the late 19th and 20th centuries.
Industrial Revolution led to the development of factories into large scale production with
consequent changes in the society this brought about the present industrial society.
Industrial society
Industrial society is a situation where industry employs the quasi - totality of the population this
consequently brought about various cartels such as the Labour Unions. The Labour union is an
organization of workers who legally constituted to achieve common goals in the key areas such as
wages, working hours and working conditions. Industrial Revolution brought about a total turn
around in the life of man and a remarkable change in the manufacturing industries.
This revolution brought about the use of machines instead of hands in production. The change
resulted to industrial revolution all over the world but started in Europe and began in England in the
year 1730. The Industrial Revolution was a notable and indelible change in the sense that it affected
the entire society and reshaped the life of man and how he thinks.. It brought about a system where
peasant farming gave way to large scaled mechanization

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BUT Industrial Revolution engendered exodus of people from villages and countryside to big town
and urban areas :
1) It brought about high cost of living .
THOUGH
1) it raises the living standard of people too
2) It fosters trade relationship between nations.
3) Industrial Revolution brings about what is general referred to as the wonders of
science .
4) Along with it surfaced various system of Government e,g Capitalism, Socialism,
Communism.
5) Equally the creation of workers union, social legislation and government regulations.
6) It increases and regulates the working hours of workers
The construction industry is very dynamic, construction activities are highly prone to the
effect of loan and interest rates, Government budget, inflation and economic upswing
and meltdown therefore the construction company which must profit both in good
times and in bad time is that which has learnt to apply strong and sound management
techniques .
The construction manger’s roles vary slightly from company to company. Control over the
construction process
MANAGEMENT STYLES OR STRATEGIES
MANAGEMENT STYLES are characteristic ways of making decisions and relating to subordinates.
Management Styles have been categorized into many parts : we discuss only the following:

1) The Authoritative (autocratic ) style of management :

An authoritarian leadership style is exemplified when a leader dictates policies and
procedures, decides what goals are to be achieved, and directs and controls all activities
without any meaningful participation by the subordinates.
Authoritarian styles of leadership, also known as autocratic styles of leadership, position
leaders as the ultimate decision-makers. Employees and subordinates are utilized as
resources for information, but their input is not necessarily considered when it comes time
for an authoritarian leader to take action. There is a spectrum of authoritarian styles. Some
authoritarian leaders may act outwardly aggressive and dominant, while others concentrate
on using experience to act quickly and strategically. Authoritarians who use their leadership
to play up their power as a tactic for motivating or intimidating others are often viewed as

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 extreme. They are authoritarian leaders who intimidate. These leaders may be known for
yelling, threatening and instilling fear in their followers. Their intention is to ignite people
into action with stern control. These individuals demand respect and have extremely high
standards to which they hold themselves and others.
2) PREDICTIVE STYLE OF MANAGEMENT:
PREDICTIVE MANAGEMENT: Predictive management focuses on reducing the number of
problems that require reactive management. The more problems that can be prevented
through predictive management, the fewer problems will need to be solved through
reactive management.
If you are good at predictive management, you are:
 Thoughtful and analytic,
 Not likely to go chasing after the current panic,
 More aware of the important than the merely urgent issues,
 Able to identify patterns in data and patterns of failures,
 More focused on "why" did something go wrong, rather than "what" can be done to fix it,
and
 Able to keep the big picture in mind when working through the details.

Someone who is good at predictive management is sufficiently detached that they can
identify the conditions that lead to certain problems and can implement procedures to
reduce or eliminate the problems. Rather than being concerned about the immediate
problem, they are able to relate current conditions to earlier information and predict when
problems might arise.

A predictive management style is an important ability for a manager to have. The more problems
that can be prevented through predictive management, the fewer resources will need to be spent
on reacting to problems that have arisen. Predictive management does not replace reactive
management, but it reduces the need for it.

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3) Reactive style of management
Reactive management deals with problems as they come up.
It is a management style that is much admired for its ability to quickly get the resources
back into production, whether those resources are machines or people. If you are good at
reactive management, you are:
Decisive and able to act quickly,
Able to find the root cause of events,
Creative and able to develop many solutions,
Innovative and able to find new ways to solve problems, and
Calm and in control in the midst of a "crisis".

Someone who is good at reactive management is able to remain calm, quickly analyze the
problem, and find its root cause. Rather than getting lost in the symptoms, they are able to
think up many possible solutions, some proven and some new, and select the best choice.
They are equally quick at implementing the solution to resolve the problem.

A reactive management style clearly is a desirable skill set for a manager to have. By quickly
solving problems they are able to get the people and/or machine quickly back to work and
productive again.

However, it's not the best style. Managers should concentrate on improving their ability in
predictive management as well.

NOTE: The successful manager has to be conscious of the managerial styles is consulting

and able to change style when it is necessary

Many Managers believe that their job is to resolve problems that arise. While that is true, it

is only the lesser part of the job. More importantly, a manager's job is to prevent problems.

This is the difference between reactive management, which solves problems as they occur,

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 and predictive management, which tries to prevent many problems from arising in the first

place.

THE ARTS OF LEADERSHIP

The leader is the one others should follows willing and voluntarily

The good leader is the one that is capable of demonstrating most of the following

leadership attributes (qualities, characteristics , traits) i.e can convince others that he:

1. can be believed

2. knows where he is going

3. knows how to get there

4. is capable of making the mission exciting and possible to be accomplished

5. makes them capable of carrying out the roles

6. has the courage and persistence i.e. would not back off from discouragement

7. can be trusted, not using the purse of workers for his own personal advantage

Leadership begins with a desire to achieve and

To achieve goals you must plan

To plan you must analysis
To analyse you must organize
To organize you must delegate
To delegate you must administrate
To administrate you must communicate
To communicate you must motivate
To motivate you must share
To share you must care
To care you must believe
To believe you must set goals that inspire belief and desire to achieve
Thus, the process of leadership begins and end with goals

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PRINCIPLE OF MANAGEMENT
TO BE AN EFFECTIVE MANAGER, THE FOLLOWING MUST BE IN PLACE:

1) Divisions of work i.e. specialization to productivity.

2) Authority i.e. the right to give orders and power to instill obedience. Authority is made up

of personal authority and office authority

3) Discipline i.e. obedience, energy and respect mutually accorded

4) Unity of command i.e. receiving order from one supervisor only

5) Unity of direction i.e. one plan to reach one set of objective

6) Submission of individual interest to general interest i.e. placing the interest of the

company above personal interest

7) Remuneration must be fair and satisfactory

8) Centralization i.e. one centre brain (expected in a large companies or project)

9) Line of authority i.e. appropriate channel of authority up, down and across.

10) Order i.e. Placing everyone in his or her place.

11) Equity i.e. fairness and justice

12) Initiative i.e. maintain freedom to oppose and inspire action

13) “Esprit de corps” harmony and unity among employees and managers

14) Span of control i.e. provision that is appropriate to be done.

BENEFITS OF EFFECTIVES CONTROLS

 motivate better planning

 Simplify and strengthen the engineering organization

 Increase the effective of command

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FUNCTIONS OF ENGINEERING MANAGEMENT

1. Planning

2. Organizing

3. Staffing

4 motivating

6. Controlling

PLANNING

 This include setting objective

 Determine rules and procedure

 comprehensive

 Forecast materials

CHARACTERISTIC OF A GOOD PLANER

1. Unity i.e. one over all plan following specific plans for each activities.
2. Continuity: in terms of long range and short range.
3. Flexibility: to compensate un-expected data or event
4. Precision: so that most of guess work is eliminated.
ORGANIZING
 Provide everything necessary for functionality including capital, personal, equipment
and materials
STAFFING
Staffing concerns with selecting, hireling and training employers including determine the
require personal in terms of number and level of technical qualities and manage the people require
to fill all level of the organization and establishing standard to measure the performance of the
employees.

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MOTIVATING
Motivating involves activities such as:
 Guiding employees to meet the establishment performance standard.
 Maintaining morals e.g. by caring for them and providing comfort
 Specifying the objectives to employees
 Rewarding those employees with high achievement

CONTROLING
Controlling is a verification of weather or not everything takes place in comforting to the plan
adopted, the directive issued an d the principled established.
Controlling activities includes:
 Monitoring the actual performance of personal
 Comparing actual performance of personal against self standard taking corrective
measures
 Facilitate coordination
FUNCTION OF ENGINEERING MANAGEMENT
1. Planning
2. Organizing
3. Staffing
4 motivating
5. Controlling
THE CONSTRUCTION PROJECT MANAGERS (ROLES)
The construction mangers roles vary slightly from company to company. Most prominent ones are:
1. Control over the construction process
2. Preparation of the construction estimate
3. Negotiation of all contracts and sub contract awards
4. Purchasing the materials needed
5. Administrating the construction process
6. Reviewing working drawing and designs
7. Preparing monthly requisitions
8. Following up on payment

THE EFFECT OF I.R: It has changed the face of nations giving rise to urban centers requiring vast
municipal services.
MANAGERIAL SKILL

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To Perform his Functions Successful The Project Manager requires the Following eight Managerial
Skills ( “ACADETIO”) In Addition To Leadership Skills.
1) ADMINISTRATIVE SKILLS: The ability of engineering management to manage in terms of
organization, planning, direction and control. They also involve the ability to balance direction
of subordinates with provision of subordinate independence by setting goals and providing
how to meet such goals.
2) COMMUNICATION SKILLS: The ability of the engineering manager to provide written or oral
information within the organization. This is the most impotant skill as other skills will not have a
chance to function in the absence of communication skills
3) ANALYTICAL SKILL: The ability of the engineering manager to employ analytical techniques and
or tools in analysis work related problem.
4) DECISION MAKING SKILLS: The ability of the engineering manager to make decision that are
associated with the organization and the ability to know whether to reject perfectionism in
favour of action.
5) TECHNICAL SKILLS: the ability of the engineering manager to employee the required technical
knowledge of procedure in doing his works or tasks. The technical skills are required more in
the low-level management position.
6) INTERPERSONAL SKILL: The ability of the engineering manager to get along with other people
and lead them.
7) ORGANISATION SKILL: The ability of the engineering manager to understand the functions of
each group/department in the organization structure. As well as the ability to develop such
organization.
8) ENTREPRENEURIAL SKILLS: the ability of engineering manager to sell ideals and promote new
ideals and product and ability to examine the worst consequences before taking risk.

CONSTRUCTION PLANNING AND SCHEDULE

The requirement of planning and schedule includes
A. Common sense
B. Sense of logical analysis
C. Thorough knowledge of construction method, material and practice

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PLANNING:
Simply means the application of the thought process that must be entered into before actual
scheduling can begin.

Planning process should provide answers to these 14 preliminary questions.

1. LONG ADVANCE PURCHASES: there are many items that will require purchase
orders (L.P.O) to the be placed long in advance of the time that the item is needed on the
job because of materials shortage, fabrication time or similar delay factor
2. UTILITY INTERRUPTION: is there are part of the project that will involve an outage

of utility services such as H2O, power, gas or other essential services .If so, the utility

owner/agency has to be contacted to determine the maximum length of the outage. The

time of day or week that outage will be permitted or similar restrictive control?

3. TEMPORARY UTILITY: Will temporary utility line be built to by- pass the construction

area, and with temporary roads be required to provide “the four routes” for street traffic.

4. TEMPORARY CONSTRUCTION SERVICES: Who provides temporary construction

utility services and from who must it be obtained?

5. LABOUR: HAs representative of labour been contacted in the area of construction to

establish the jurisdiction of responsibility of the various trades to the use in the work, as

well as to determine the union work roads in the affected area.

6. WORK AND STORAGE AREA: HAs provision been made for contractor works and

storage area? In Ado-Ekiti,(for example) have you contracted the town council for permit

to stock materials on the road

7. TRAFFIC REQUIREMENT: As local traffic control regulation been investigated? Will

construction equipment be allowed to operate on public street ? would street closure in

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 construction area be permitted and will special control and flag-men be required to direct

traffic around construction.

8. TEMPORARY ACCESS: Will temporary access including temporary bridges be

required to provide continue access to residences and places of importance during the

construction period.

9. OTHER CONTRACTORS: Will order contractors be working in the area (site) , this will

requird scheduling coordination with them in to complete the work of contract.

10. INTERDEPENDENCY OF TASKS: As some of the tasks in this project dependent upon

the completion schedule of another contractors on utility owner before they can be

started?

11. ENVIRONMENTAL CONTROL: Will special environmental control be required ,if so

what?

12. SPECIAL REGULATION: Are there special regulations, such as NAA, N, requirement

for works at airport that may affect the construction dulling or construction time

13. SPECIAL CONSTRUCTION EQUIPMENT: Will special equipment be hired for

construction? If so, is it off-road that will require special land routes? What are the load

limit and d ridge clearances for roads in this area?

14. TIME FOR CONSTRUCTION: Is the time allowed to complete the project adequate

for the location and seasons, will it required increases crew sizes or premium times

SCHEDULING:

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 ADVANTAGES

 It controls the work

 It plans and guides the work gives early indication, should the project start don from

original goals and objectives

 It guides the contractors ahead regarding the man-power and equipment needed.

WHAT IS MANAGEMENT?

Act of getting people together to accomplish desired goals and objectives using available
resources efficiently and effectively.

What is Construction Management?

Construction Management is ‘a service that implements specialized, project management

methods to manage the design, construction and the planning of a project, from its start to its end’.
The project management process in construction can be extremely perplexed but its main core is
always the same. The coordination, planning, and completion of a project regardless of its type
(e.g. commercial, residential, industrial, agricultural, heavy civil). Solid construction management
requires good real-time communication between the various project stakeholders.
Construction management is therefore a professional service that provides a project’s owner(s)
with effective management of the project's schedule, cost, quality, safety, scope, and function.
Construction management is compatible with all project delivery methods. No matter the setting, a
Construction Manager’s (CMs) responsibility is to the owner and to a successful project.
At its core, a capital project is made up of three parties
 The owner, who commissions the project and either funds the project directly or finances it
through a variety of methods.
 The architect/engineer, who designs the project.
 The general contractor, who oversees day-to-day operations and manages subcontractors.

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The CM represents the owner’s interest and provides oversight over the entire project directly for the
owner. His/her mandate is to work with all parties to deliver the project on time, at or under budget,
and to the owner’s expected standard of quality, scope, and function.

CMs are uniquely qualified through combined education and experience to work with the owner,
architect, general contractor, and other stakeholders to determine the best possible sequence of
construction operations and develop a detailed schedule and budget, while also establishing plans for
project safety and security and helping the owner manage risk. This requires using project
management information systems (PMISs) and complex planning techniques, like critical path
method, as well as knowledge of construction methods.

A 2013 study by McGraw-Hill Construction and supported by the CMAA (Construction

Management Association of America) Foundation showed that using professional CMs saved
money, avoided or mitigated problems, and produced higher quality results for owners.

Professional CMs use industry-standard practices to manage projects successfully. The CM Body of
Knowledge and Standards of Practice address all six areas of construction management services:
schedule, cost, safety, quality, function, and scope.

In short construction Management is the act of planning, organizing, allocating resources

directing and controlling activities that are either technical and or industrial in character in
an organization

SIGNIFICANCE OF CONSTRUCTION MANAGEMENT

• Construction industry Provides employment on large scale

• If construction project schedules are not maintained, the cost increases

• Use of machine and equipment in construction industry increases the quality of

construction

• The art of construction has slowly developed as a science through ages. In Nigeria, building

construction in rural and semi-urban areas is more or less on the increase

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 Objectives of Construction Management

The main objectives of construction management are

1. Completing the work within estimated budget and specified time
2. Evolving a reputation for high quality workman ship
3. Providing safe and satisfactory working conditions for all personnel and
workers
4. Taking sound decisions at the lowest practical management level through
delegation of authority
5. Motivating people to give of their best within their capacities
6. Creating an organization that works as a team

Economy by the Engineer

By incorporating components/materials in the design which are locally

available
1. By avoiding special equipment not available in the country
2. Using standard or similar sections (modular coordination techniques)
3. By giving full details/specs and eliminating wrong parts procurement
4. Having a trained and experienced supervisory staff
5. By providing all necessary documents to avoid delays

Functions of Construction Management

The function of construction management are

1. Planning and scheduling
2. Organizing

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 3. Staffing
4. Directing
5. Controlling
6. Co-ordinating
7. Planning and scheduling
1. Planning involves formulation of a number of alternative realistic work plan
for achieving specified objectives and finally selecting a plan which is best
suited from the stand-point of available resources and constraints imposed upon
the project. It essentially covers the aspects of “what to do” and “how to do
it”.
Scheduling is the fitting of the final work plan to a time scale. It shows the duration
and order of various construction activities. It deals with the aspect of “when to do
it”.
2. Organizing
Organizing is concerned with
• Division of the total construction work into manageable departments/sections
• Systematically arranging various operations by delegating specific tasks to
individuals
• The relationship between various personnel are established
• The organizational structure of the project is depicted by a flow chart.
3. Staffing
Organizing involves the division of project work into sections and staffing is provision
of people to fill the positions so created
Staffing functions include
1) Recruiting the right people
2) Arranging staff training courses
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 3) Carryout proper staff assessment
4. Directing
• The directing function is concerned with training subordinates to carryout
assigned tasks, supervising their work and guiding their efforts.
• The essence of directing lies in the ability to motivate people individually and
as groups to utilize their creative efforts in achieving specified objectives

5. Controlling
• Controlling is necessary for ensuring effective and efficient working

• It involves a constant review of the work plan to check on actual achievements

and to discover and rectify deviations through appropriate corrective
measures.
• The essentials in management control are
– Actual performance measurement (Progress, quality, cost)
– Comparison of actual and planned performance
– Analysis of shortfall in performance, identification and
implementation of suitable remedial measures
• Quick and accurate flow of information is a vital aspect

Co-ordinating
• Since authority converges to the top of the organizational pyramid, it is
necessary to bring together and coordinate the work of various departments
and sections
• It requires an efficient system of communication so that each department and
section is aware of its role and the assistance to be expected from others

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• Regular meetings of departmental heads with top management are
fundamental to proper coordination
• Plans, problems and remedies are discussed for determining best solution

Resources for Construction Industry

1. Materials
– Aggregate, Cement, Bitumen, Steel …..
2. Manpower
– Unskilled, Skilled, Operators, Engineers, Managers ….
3. Machinery
– Mixing plants, Transit mixers, cranes, boom placers, concrete pumps,
rollers, pavers, graders…….
4. Funds
5. Space
– Govt. land /private land

Types of Construction

• Light Construction
– Buildings and light structures
– Residential houses, shopping centers, schools, water tanks, culverts,
small bridges
• Heavy Construction
– Heavy plant &Equipments used

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 – Work scope will be large
– Multi span bridges, tunnels, dams, barrages, highways, railways,
airports, harbors
• Industrial construction
– Special technology, plant & equipment used
– Chemical & fertilizer plants, steel plants, petroleum refineries, atomic
/thermal power plants, automobile & Aircraft industry

Stages in Construction

1. Briefing stage
2. Designing/planning stage
3. Tendering stage
4. Construction stage
5. Commissioning stage

Construction team

• Owner
– Individual or group of individuals, private or public undertaking
– Ultimate authority with major decision making power
– Controls resources
– Approves changes if any in scope/schedule
– Eg. PWD, NHAI, Indian Army,
• Engineers and Architects
– Civil, mechanical, electrical, Architects, specialists/consultants
– Design, Supervision, Project management consultants

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 • Contractor
– With a team of planning engineers, site engineers, surveyors, suppliers,
subcontractors

CONSTRUCTION CONTRACT LAW

. Definition of a contract
The term Contract used in the Construction management can be defined as: "An agreement
entered into by two parties under the terms of which one party agrees to perform a specific
job for which the other party agrees to pay.
Contract documents attached to and/or stated in the agreement form integral parts of the
contract"
. Essentials of Contract validity

 The parties to the contract must be competent, and legally capable of playing their

intended part. The law can not enforce the agreement on someone who has not the legal

capacity to enter into an agreement. This could be due to infancy, lunacy, drunkenness, or

being restricted from entering into such agreement by a prior in date agreement or scope

of authority.

 The subject matter of the contract must be lawful and definite in respect of requirements

and duties of each party. For example a contract violating municipal regulation is not

binding and is void in courts. Also uncertainty in respect of the what is wanted may result in

the contract being not enforceable by law.

 Proposal and acceptance: There must be a proper proposal by one party and its absolute

and unqualified acceptance by the other party. The proposal is not binding without a clear

acceptance and is not binding beyond its date of validity.

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  Free consent of parties to the contract: Consent is said to be free when it is not caused by

force, or undue influence or fraud or misrepresentation.

. Breach of Contract

Breach of Contract is the failure to perform it. However, not every failure to perform an

obligation amounts to a true breach, as there are a number of excuses for non performance.

When a contract has been broken without sufficient excuse or justification, the party who

suffers by such breach is entitled to receive from the party in default, a compensation for

any loss or damage caused by such breach.

. Data Required for Preparing an Estimate:

A Contract may be terminated or brought to an end in either of the following ways:

 Full and satisfactory performance by both parties to their obligations under the contract.

 Breach of contract, when the default of one party releases the other party from the

contractual obligations.

 Mutual agreement of the parties to terminate the contract.

 Unforeseen circumstances beyond the control of either party render it impossible to

perform his duties or obligations stated in the contract.

 Operation of law to terminate a void contract.

. Types of contracts commonly used in construction

 Lump sum contract

 Item rate or unit price contract
 Percentage rate contract
 Cost plus percentage rate contract
 Cost plus fixed fee contract

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  Cost plus fluctuating fee contract
 Target cost contract ( Read more about this Type of contract )
Construction Contracts:

This volume aims to teach effective and practical techniques to improve the overall performance

and outcome of design projects in various industries. It shows how to maximize budgets, reduce life

cycle costs, improve project understanding and create better working relationships.

DEFINITION OF TERMS
Cartel = union , Association , legal body
Construction = building of structures
Contract = An agreement entered into by two parties
under the terms of which one party agrees
to perform a specific job for which the
other party agrees to pay.
CPM = Critical Path Method
Industry = business
PERT = Programme Evaluation Review Technique
Quasi = virtual
Revolution = uprising
Sector = Segment
Earliest Start = the value in the rectangle near the tail of
each activity
Earliest Finish = Earliest Start + Duration
Latest Finish = the value in the diamond at the head of each activity
Latest Start = Latest Finish – Duration
Construction Management = is the act of planning, organizing, allocating
resources , directing and controlling activities that
are either technical and or industrial in character in
an organization

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