Republic of the Philippines

POLYTECHNIC UNIVESITY OF THE

PHILIPPINES
College of Engineering and Architecture
City of Manila

Faculty Marked Assignment No. 1

Construction Project Management

In Partial Fulfillment
of the Requirements for the Course
CIEN 40012: On-The-Job Training 1

SUBMITTED TO:
Engr. Kwin Juvy U. Cruz
OJT Coordinator

SUBMITTED BY:
Atanacio, Christine Mae DG.
Inocencio, Kit Jairus C.
Pesigan, Armando III T.
Punzalan, Billy James C.
Tan, Vicente Miguel L.

BSCE II-4
I. What are the advantages & disadvantages of the following Delivery Systems?
1. DESIGN-BID-BUILD
Advantages
➢ The price is up to you. Since the designer and contractor are hired separately, you
have a lot more control over the pricing of your project. Once you find a designer that
fits your price range and can produce what you’re looking for, you get to pick the
contractor bid. From start to finish, you can control how much or little you’re spending.
➢ Better project clarity. This delivery method follows a sequential timeline, meaning,
there is no overlap where designing and construction are happening at the same time.
Thus, it is much easier to see where the project is going at every step.
➢ More control. Traditional project delivery gives you much more command throughout
the process. Aside from getting to choose your own designer and contractor, you have
the freedom to make personnel changes mid-project without having to start from the
beginning again.
Disadvantages
➢ Cost Can Be Fluid. With the designer and contractor not working in tandem, the
potential for complications is greater. From not being able to successfully execute a
design aspect to missing pieces of information, these potential road bumps can cause
the price to increase as they are fixed on-the-fly.
➢ Longer Timelines. The timeline in this method is a bit longer due to the two hiring
processes. It can further lengthen if issues come up and the project owner works to sort
them out between the designer and the contractor.
 ➢ Communication Issues. Any time you have a disjointed process, miscommunications
are possible. That is no different with design-bid-build. With the contractor not
involved in the design process, issues that could have been addressed earlier often will
come to light later.

2. DESIGN-BUILD
Advantages
➢ Reduced Risks. With the building design and construction performed by one group,
the risk of issues is greatly reduced. The construction team has input throughout the
design process and the design team is readily available to address any building issues
that come up during construction.
➢ Shorter Timelines. There’s no delay between the design phase and the building phase
where bids are collected. The transition between stages is seamless, and often times the
construction can start while designing is still happening, leading to even less
interruptions.
➢ Easier to Budget. While it might not be the cheaper option, design-build costs are
often more predictable. The design-builder can wrap the whole price into a solid range
that should be pretty close to the final cost, which will allow the project owner to better
budget from the start.

Disadvantages
➢ Higher Prices. With no bidding process, the project owner does not have the ability to
select their own price. As a result, the prices tend to be higher. Plus, most design-
builders will not begin any detailed design of a building until they have been officially
hired, making it hard to price shop for a design-builder.
➢ Creativity. Many design-build companies have stock designs that they use and then
tweak to fit the project owner’s requests. While this is not true of all design-builders,
the likelihood of not getting a personalized design is much higher when considering
integrated project delivery.
➢ Less Involvement. As a whole, the project owner will be less involved with the project
than they would be with traditional project delivery. Initially, the project owner will be
heavily included with designing and planning. However, once the ball gets rolling, the
project owner will be consulted on more of an as-needed basis, with the design-builder
making more decisions.

3. PROFESSIONAL CONSTRUCTION MANAGER

a. Construction Manager as Agent of the Owner
Advantages
➢ Less experienced owners without inhouse construction capability benefit from
Construction Management expertise.
➢ A Construction Management agent’s ability to make fiscal decisions can speed up
process and reduce duplication.
➢ Additional construction expertise at the design phase can be positive for the project.
For example, cost estimating during design phase allows monitoring of
construction costs at early stage.
➢ A Construction Management agent provides second-level review of construction
documents, reduces errors and omissions, reduces costs related to change orders
and other delays.
➢ No link between Construction Management agent and the contractors; thus,
contractors can be selected based on competitive bidding.

Disadvantages
➢ Added levels of coordination and overlapping areas of authority can confuse the
traditional roles and complicate the traditional processes of design and
construction.
➢ A Construction Management agent represents an added cost.
➢ A Construction Management agent may suppress direct communication between
owner, architect, and contractor.
➢ Confusion in decision-making process may contribute to design and/or construction
delays.
➢ Since each of the three prime parties holds a separate contract with the owner, there
is the potential for adversarial relationships, increasing the likelihood of disputes.

b. Construction Management at Risk (CMAR)

• Construction Management at risk, also known as CMAR, is a type of project

delivery method wherein a general contractor is hired by the project owner of the
construction to deliberate on the construction project’s development. Typically,
after the consultation is the time where the project owner hires the general
contractor for him/her to complete the project.
• Advantages
➢ This project delivery method can provide preferable control when it comes
to costing of materials and labor throughout the different stages of the
completion and development of the project.
➢ CMAR enables lesser financial risk. This type of contract can ensure the
maintenance of the budget, if it is not maintained, the manager of the
construction has to pay for the price of the bought materials that exceeded
the budget.
➢ If the CM is brought onboard in the early, planning stages, they may serve
as the de facto liaison between the Architect-Engineer and the owner. This
early entry may provide an increased level of participation between
Architect-Engineer, the contractor, and, the owner.
➢ Since a CMAR consultant will handle managing and coordinating the
project, it can ease or relieve the project owner’s stress.
• Disadvantages
➢ This type of project delivery method can sometimes not work perfectly
when it comes to a smaller projects.
➢ Since the construction manager acts as the architect and the project owner’s
liaison, misunderstanding and communication errors may happen if
 someone incorrectly sends the information like the projects budgeting and
the deadline of it.
➢ There can be some vagueness when it comes the amount of the work that
the construction manager has done to the owner of the project. Listing and
tracking the working hours on the project do the construction manager can
receive the compensation that he/she deserve.

a. Joint Venture
• A joint venture (JV) is a business partnership between two or more separate
companies that allows them to share risk and rewards. Each party provides land,
funds, intellectual property, skills, credentials, or equipment to the creation of a
new firm.
• Advantages
➢ Creating a joint venture allows you to gather different perspectives and
expertise. Consider this: because of your short-term cooperation, the market
is now much easier for you to understand.
➢ Creating a joint venture will provide you with more resources, such as
specialized personnel and technology. You can now use all the equipment
and capital that you required for your project.
➢ A joint venture is merely a temporary partnership between two companies.
You won't be committing to it long term.
➢ You are not alone in incurring the expenses of the joint-group project's
failure if it fails. You will both support the losses because you both
volunteered to split the costs.
➢ A joint venture, for example, can have a limited lifespan and only cover a
percentage of what you do, restricting your commitment as well as your
company's exposure, according to assignment writing service experts.
➢ A joint venture provides a creative option for organizations to exit non-core
operations in the context of divestiture and consolidation.
 ➢ Firms can gradually detach their business from the rest of the corporation,
then sell it to the other parent company later. Around 80% of all joint
ventures result in a sale from one partner to the other.
➢ Because you're already riding with a well-known brand, your chances of
success will improve. Your credibility will greatly enhance because of this.
➢ Even if your cooperation is only for a certain aim, you will be able to
establish long-term commercial partnerships because of this decision.
➢ You can establish new venture opportunities even if you have little to no
money at your disposal. You will gain traction and find collaborators. Take
advantage of the opportunity.
➢ That also applies to a variety of other charges. Creating a joint venture is an
excellent approach to save money and/or share expenses.
➢ Nowadays, international joint enterprises are increasingly common. This is
a fantastic opportunity to collaborate with folks from various nations and
pool our resources.
• Disadvantages
➢ The goals of a joint venture are not always apparent, and they are rarely
articulated to all parties involved.
➢ In a joint venture, there are occasions when flexibility is limited. When this
happens, members must concentrate on the joint venture, causing their own
businesses to suffer.
➢ Equal remuneration may be conceivable, but all companies working
together are unlikely to have the same level of commitment and obligations.
➢ There is a significant imbalance of skills, assets, and investment because
diverse companies are collaborating. This may have a negative impact on
the joint venture's effectiveness.
➢ Poor co-operation and integration may come from a clash of cultures and
management styles. If left unchecked, people with differing ideas, tastes,
and preferences can cause major problems.
➢ Joint venture contracts frequently restrict participant companies outside
activities while they are working on a venture project. If you don't want to
 have a bad impact on your entire organization, make sure you understand
what you're getting into.
➢ A joint venture's success is mainly dependent on extensive investigation and
analysis of the goals.
➢ Even if a joint venture is just temporary, knowing what you're getting into
is critical if you don't want to be stuck in a partnership.
➢ In the early phases of a joint venture, you may be inclined to depart due to
a lack of leadership and support.
➢ Because a joint venture brings together organizations from various
industries and with varying interests, there is frequently a severe lack of
communication among partners.
➢ Due to the distinct character of a joint venture, it is probable that the partners
will not pay their whole attention to the project and will become unreliable.
➢ It's possible to set goals that are unrealistic and ambiguous. To avoid this,
you and your partners must conduct extensive study before to launching
your joint business.
5. Integrated Project Delivery (IPD)
• The use of a team-based strategy to align the interests and objectives of all
stakeholders in a project is known as integrated project delivery (IPD). Bringing
everyone together and encouraging them to work on the project jointly can
substantially enhance outcomes by reducing the chance of misunderstandings.
• Advantages
➢ Transparency has improved. Everyone is brought up to date on the
status of the project when all team members meet on a regular basis to
share their ideas and experiences. There will be no unforeseen charges
or delays because of this.
➢ Time is saved. Using an integrated approach will help you complete
your job faster. Better communication can help teams deliver projects
on time by reducing the amount of time they squander.
 ➢ Accountability is shared. Traditional methods can force contractors
and subcontractors to take on a lot of risk, whereas IPD shares
responsibility for the project throughout the entire team.
• Disadvantages
➢ Trust isn't something that comes naturally. Using IPD does not
guarantee that team members will trust one another. Contractors,
owners, architects, and engineers all need to focus on improving their
connections. Otherwise, your project can revert to more traditional
project delivery approaches.
➢ IPD is a term that not everyone is familiar with. Because lenders
aren't necessarily aware with this new technique, some project owners
are having difficulty obtaining funding for IPD initiatives. Some
designers and contractors may be inexperienced with integrated project
delivery and refuse to participate.
6. The Project Owner-Builder
• One of the most common delivery techniques is design-bid-build, which is the
classic low bidder model. The project owner forms distinct contractual
connections with the design team (architect and engineer) and the general
contractor (GC) who will carry out the construction operations using this
approach.
• Advantages
➢ The procedure is easy to follow and comprehend for homeowners.
Because there is less contact between the design team and the general
contractor, design changes are easier to follow than in a design-build
project. The design team and the contractor's roles are more
autonomous, and the responsibilities of each function are clearly
defined, so owners can be fully involved in the design process.
➢ Rather of sharing a stake in the enterprise with the GC, the design team
acts on behalf of the owner. As a result, design professionals have an
incentive to create a high-quality building and ensure that their design
specifications are followed during construction.
 ➢ Furthermore, with this method, the design team takes a more active
position in construction administration, allowing for greater clarity in
the contractor's interpretation of the design criteria and better overall
realization of the owner's design aims.
➢ Scheduling is easier to manage because the design, bidding, and
construction processes all go in the same order. Even though minor
design changes are almost unavoidable once construction begins, the
contractor can plan their construction timetable using firm design
drawings.
➢ Owners could examine bids as well as the costs detailed in each
quotation. Because the design documentation is well developed by the
time the contractors are bidding on the project, their estimates can be
more accurate.
➢ Because of its widespread use, most GCs are familiar with and
comfortable with its methods.
• Disadvantages
➢ Cost-based design adjustments are less flexible due to the method's
linear character. Architects and engineers miss out on valuable cost
information from the general contractor, and if all of the bids come in
over budget, the design team will have to go back to the drawing board
to hunt for value engineering alternatives. Bids can only be re-solicited
after that. The project's commencement date has been pushed back due
to the extensive redesign process. The design-build method, on the other
hand, allows the contractor to provide continual cost-related feedback
to the architects and engineers as the design develops, allowing the
project to be tailored to its financial requirements
➢ The design-bid-build strategy also excludes specialized subcontractors
from participating in the design process. This lack of specific
knowledge could result in greater prices or even design team blunders.
 ➢ Because all phases of a project are completed in order under the design-
bid-build method, a delay in one step can have a domino impact on the
entire project.
➢ The lowest bidder gets the contract when using the design-bid-build
procedure. Each GC offers his or her lowest possible number, and any
design inconsistencies or flaws can encourage change orders. Because
bids are picked only based on price, building quality may suffer.

2. Conduct an internet research about the following sustainability systems:

1.) USGBC-LEED
• Leadership in energy and environmental design, also known as LEED is a third-party
green building certification program that is globally recognized standard when it comes
to design, high performance green buildings’ operation and neighborhoods. This
program provides a framework for buildings that are cost saving and greatly efficient.
• Benefits to project owners and occupants
➢ Superior public image
➢ Enhanced indoor air quality
➢ Increased strength of buildings
➢ Reduces solid waste up to 70%
➢ Prioritizes people’s health and well-being
➢ Profitable, cost-effective and good for the economy
➢ Reduced energy and water usage
• Challenges
➢ failure to establish metrics and success criteria
➢ lack of compliance with the project management office process
➢ slow energy transition and insufficient share of renewable energy
➢ climate change

2.) Green Globes

 Green Globes - identifies opportunities and provides effective tools to achieve
success. A nationally recognized green rating assessment, guidance and certification
program, Green Globes works with you to realize sustainability goals for new construction
projects, existing buildings and interiors.

Green Globes offers a different approach: one that provides in-depth support for
improvements ideally suited to each project. Building owners and facility managers know
their buildings and operations better than anyone else. We respect and leverage that
knowledge with personalized assistance to produce best practices in sustainable design,
construction and operations. Incorporating third-party assessors available throughout the
certification process, we forge a partnership that allows experienced green building project
teams to shine and reduces the learning curve for those new to green building.

Green Globes Certification benefits help you:

• Reduce operating costs

• Qualify for tax incentives and utility rebates
• Meet government regulations
• Attract and retain employees
• Increase your property’s marketability

3.) PGBC – BERDE

In 2009, the BERDE Program was established by the Philippine Green Building
Council (PHILGBC) as an appropriate response to the Philippine building industry's need
to proactively address the negative impacts of climate change. The program was
established to develop the Philippines' own national voluntary green building rating system
to facilitate green building projects in the country, inspire confidence in the industry, and
build trust in the industry.

The BERDE Green Building Rating System is developed under

the BERDE Program. BERDE is a tool to assess, measure, monitor, and certify the
performance of green building projects above and beyond existing national and local
building and environmental laws, regulations, and mandatory standards.
 BERDE is recognized by the Philippine government, through the Department of
Energy (DOE), as the National Voluntary Green Building Rating System.

WHY SHOULD YOU USE BERDE?

• As a guidance tool

BERDE specifies current best practice. If you are a building professional,

various BERDE Green Building Rating Schemes are made freely available for your use in
designing, constructing and operating your projects in a resource-efficient, economically
viable, and socially responsible manner.

• As a credible marketing tool

Getting your projects BERDE-certified provides you with a positive marketing

advantage.

Achieving a BERDE certification for your green building project lets your clients and
the public know that your project is a better building in the market. The third-party
assessment ensures that your project are assessed, rated, and certified in a credible and
unbiased process.

• As a transparency tool

BERDE enables you to exhibit the performance of your project to other parties in a
credible manner. Your certified BERDE project allows you to showcase your leadership in
sustainability through unbiased, balanced and impartial assessment and certification of
your building performance. Certification under BERDE builds trust and confidence among
your project stakeholders.

• As a compliance and policy support tool

BERDE supports the sustainable development plans and programs of government.

Increasing priority for green building and sustainable development by government requires
you to be knowledgeable with current laws and regulations at the national and local levels.

At the national level, as the recognized as the National Voluntary Green Building
Rating System by the Philippine government, several national agencies have been
 using BERDE as a guide in developing policies and programs for green building and
sustainability for the building sector. At the local level, several local governments within
the Philippines have incorporated BERDE as part of their policy to ensure the
environmental performance of projects within their jurisdictions.

BERDE recognizes performance beyond existing environmental and building laws,

regulations and standards. As a compliance tool, it supports you in complying with building
and environmental laws and regulations.

a.) What are the Benefits of Sustainability Building Certifications to Project Owners
and Occupants?
First and foremost, let us discuss the definition of sustainability. In our changing
world, sustainability in projects is more important than ever. Project sustainability involves
both individual and organizational responsibility to ensure that outputs, outcomes and
benefits are sustainable over life cycles and during their creation, disposal and
decommissioning. Sustainability is relevant across all areas of project-based working. For
example, the procurement team seeking opportunities to buy from sustainable sources and
to make the supply chain more efficient. Project professionals have a responsibility to
ensure that their work minimizes, or ideally positively affects, ongoing sustainability.
 Sustainability is the ability of an organization to continue its mission or program
far into the future. All projects have to end eventually, but the project impact should
continue. Donors want to see how the project and its impact will outlive their direct
involvement in the project.

Buildings have extensive direct and indirect impacts on the environment. During
their construction, occupancy, renovation, repurposing, and demolition, buildings use
energy, water, and raw materials, generate waste, and emit potentially harmful atmospheric
emissions. These facts have prompted the creation of green building standards,
certifications, and rating systems aimed at mitigating the impact of buildings on the natural
environment through sustainable design.

Therefore, sustainability building certifications to project owners and occupants

have its benefits. It will lead not only towards success but also to sustain efficiency and
maintain organization for both the project owners and occupants. Going green helps not
only both project owners and occupants but our earth itself. Sustainable construction
means using renewable and recyclable materials when building new structures, as well as
reducing energy consumption and waste. The primary goal of sustainable construction is
to reduce the industry's impact on the environment. Green buildings also offer a number of
economic or financial benefits, which are relevant to a range of different people or groups
of people. These include cost savings on utility bills for tenants or households (through
energy and water efficiency); lower construction costs and higher property value for
building developers; increased occupancy rates or operating costs for building owners; and
job creation.

b.) What are the Challenges of Sustainability Projects?

One of the most important challenges faced by business managers today is the
integration of sustainability into their core functions. The contemporary enterprise is forced
to leap forward from the mere adoption of green practices toward rethinking, redesigning,
and redeveloping business practices in a more sustainable way. Moreover, adopting
sustainable construction methods is not an overnight process; there are challenges to face,
the greatest of which is cost. There will always be pressure on construction organizations
to reduce costs where possible, but there are still concerns that sustainable construction
methods will cost an organization more. Economic and environmental sustainability can
be driven together with core social factors including fairness and equality, poverty, health,
education, delinquencies, demography, culture, and employee engagement within an
organization.

• Poverty and youth unemployment - In emerging and developing countries

(markets), poverty and youth unemployment should gain traction. That means
looking at issues like job creation and integration of the underserved in businesses’
target market and supply chain.
• Advancing the circular economy - Circular economy will be the most important
sustainability issue in general. Circular economy could be the best path to
sustainability, especially for multinational companies. It is important due to
limitation of natural resources. The circular economy means that waste becomes a
resource input. Closing the circle of resource supply and disposal lets us stop
depleting virgin resources and contributing to pollution. Carbon emissions, plastic
pollution, water quality concerns, can be an issue of the past. Building the circular
economy requires innovative new products and collaboration across sectors.
• Government action - Without strong and clear signals from government, companies
have difficulty making the business case for developing projects to support the
Sustainable Development Goals (SDGs). Those policy signals are missing globally.
Political uncertainty is reducing or delaying their sustainability efforts. Government
plays a critical role in creating a framework that demands action from businesses
in order to see system-wide change. We need good practices of sector collaboration
and public-private partnership around SDGs implementation.
• Climate change – performance monitoring. We are already dealing with impacts
from the climate crisis. We need information on how companies and countries are
performing regarding reduction of GHG emissions and other actions to fight
climate change. If we could see the performance reported in a standardized way,
 monthly, we would have more insights on priority areas – for companies,
governments, associations, etc.
• Holistic thinking and action - The most critical issue for business is not so much a
singular issue, but the complexity and interaction between different sustainability
issues. A single-minded focus on climate change is inadequate. Climate change is
connected to everything from the way our economy operates to the way our society
is organized. Companies and others need to deal with sustainability issues in a more
integrated manner.
• Social justice in climate transition - Focus on climate change is outstripping the
ability to manage a more holistic, human-centered, socially just approach. Due to
focus on the clear need to address climate change, we are not spending enough time
deeply considering how to achieve this in a socially just manner. If we fail to
transition workers, for example, simply expecting that they will retrain into the new
energy technologies, we risk serious misalignment of labor skills and supply vs
demand. The result may be so damaging to our social fabric that even those nations
with well-developed social programs may not be able to cope with the global
instability. We should anticipate and mitigate the issues, so that we support the
efforts of all sectors – business, government, civil society, academia – to work
towards a socially just transition to an economy based on low or no carbon.
• Business influencing policy - Tackling sustainability is not just about making the
operations green. Real change requires building a social movement and pressuring
politicians to implement change at scale. So far, corporations are just making nice
statements about the need for climate action. They need to advocate for climate
policy and educate customers and employees.

The motivations behind sustainability are often complex, personal and diverse. It is
unrealistic to create a list of reasons why so many individuals, groups and communities are
working towards this goal. Yet, for most people, sustainability comes down to the kind of
future we are leaving for the next generation. Sustainability as a value is shared by many
individuals and organizations who demonstrate this value in their policies, everyday
activities and behaviors. Individuals have played a major role in developing our current
 environmental and social circumstances. The people of today along with future generations
must create solutions and adapt.

References

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