Eddie D.

Boongaling October 04, 2021

BSCE IV - Block 1 Construction Method and Project Management
Quiz 1

1. What is Contract?
A contract is a legally binding agreement between two or more parties. In other words, a
contract is an agreement with legal enforceability. It establishes and defines the roles and
responsibilities of all parties concerned.

2. What are the considerations’ in preparing a construction contract?

In preparing a construction contract, the following considerations should be taken into
account:

Project description, identifying the scope of works, inclusions and exclusions, identifying the
responsibilities of both parties (the owner and contractor), contract sum and payments, timelines
and payment stages, guarantee (retention), penalties, and disputes.

3. What is specification?
Specifications establish the requirements, under which a contractor must deliver the
project, enabling all parties to evaluate the degree of conformance. It is a set of documented
requirements that supports working drawings, like explaining the scope of works to be done,
method of installation or application, quality of workmanship, and materials and equipment to be
used.

4. What is CSI?
Construction Specifications Institute. It is an organization that maintains standards of
construction language used in building specifications and documents. It developed a
standardized numbering system called master format for identifying requirements products and
activities used in the construction industry

5. What is CSC?
Construction Specifications Canada. CSC is a multi-disciplinary, non-profit organization
dedicated to improving construction industry communication, contract paperwork, and technical
knowledge.

6. What is Lump sum Contract?

Lump sum contract uses a fixed price for all work done on the project. These
construction contracts are also called fixed price or stipulated sum contracts. Incentives are
sometimes built into these contracts to reward the builder if the job is completed ahead of
schedule and can also include penalties sometimes called liquidated damages for a job that is
completed late.

7. What is Unit Price Contract?

Unit price contracts typically emphasize the types of tasks being carried out in addition to
the materials used on those tasks. This categorized style of pricing makes it easier for owners to
evaluate each cost and allows builders to more accurately charge for each category.

8. What is Time and Materials Contract?

Time and materials contracts define an hourly or daily rate for builders. In addition to
paying this rate, owners also agree to pay any related project costs, which are noted in the
contract as direct, indirect, markup, and overhead costs

9. What is Guaranteed Maximum Price Contract?

A guaranteed maximum price contract establishes a ceiling, or maximum price, that the
customer must pay their contractor or subcontractor, regardless of actual costs. A guaranteed
maximum price contract, simply sets a limit on the contract price that cannot be surpassed.

10. Define Organization.

An organization is a group of people who work together freely and successfully to

achieve a common objective. Every human association for the aim of achieving a common goal
takes the shape of organization.

11. Define Management.

Management is a process that involves the steps of planning, organizing, acting, and
controlling to determine and achieve goals through the utilization of people and resources. It
is the effective motivation of men and the efficient use of resources to achieve a set goal.

12. What are 6M’s of Organizations?

The 6M’s are Men, Materials, Machines, Methods, Money, and Market.
1. Men - are the various members of the organization, ranging from the very highest to the very
last worker.
2. Material - indicates the elements required for the allocation of functions or the achievement of
the organization's goals.
3. Machine - the tools required in producing its intended output.
4. Methods - the procedures and ways used in the course of its actions.
5. Money - the financial resources of the organization.
6. Market - the potential source of profit of an organization.

13. What is Construction Project?

Construction project is an undertaking that can only be undertaken by a qualified
individual or group of people. Materials, money, labor, machinery, and processes are all
involved; without these resources, nothing will be accomplished.

14. What are the functions of project management?

The functions of project management refer to the specific tasks that must be completed
by the project manager in order for the organization's goals to be met. These managerial
functions can be divided into four categories: planning, organizing, directing, and controlling.

Planning - is the mental effort by which executives anticipate the potential causes or
circumstances that may affect or change a company's actions and objectives.

Organizing - is the process of bringing together men and forming relationships between them,
as well as defining the authority and duty that employees have in using the company's material
resources to achieve defined goals or objectives.

Directing – refers to the process of getting all employees in a company to do what management
wants.

Controlling - means comparing completed work to plans or standards and making necessary
adjustments or corrections as new developments or unforeseen events arise.

15. Why decision-making is important?

Decision making is important because it is the foundation of management. The majority

of managers' efforts are focused on this process. Decision is a judgment. It is a choice between
options. It's rarely a case of choosing between right and wrong. At best, it's a choice between
almost correct and almost certainly wrong. A single decision might have a significant impact on
the project.