PERT AND CPM Encourages periodic re-evaluation and provides an accurate measure of

progress.
What is PERT?
PERT is a Program Evaluation and Review Technique. PERT/CPM Project Requirements
Presidential Decree 1594
What is CPM? “The program of work shall include, among other things, estimates of the work
CPM is the Critical Path Method. items, quantities, costs and a PERT/CPM network of the project activities… in the
preparation of the bidding documents, the government shall make and estimate
PERT and CPM? the actual number of working days required to complete the project through
These are networks developed independently in the latter part of the 1950s. PERT/CPM analysis of the project activities and corrected for holidays and
Techniques used for planning and coordinating large-scale projects. weekends.”
The use of PERT began in 1958 to speed up the Polaris Missile project.
PERT/CPM Project Requirements
Developers of CPM Memorandum Circular 153 (Ferdinand E. Marcos Jan 27, 1968)
J.E Kelly of the Remington Rand Corp.
M.R. Walker of Du Pont Gantt Chart (Bar Type)
PERT/CPM Network
PERT vs. CPM
PERT/CPM Project Requirements
Project Evaluation and <Meaning> Critical Path Method is a Section 6 of RA 5979
Review Technique is a Project Management - requires application of PERT/CPM technique to all projects with an estimated
technique used to plan and technique which plans and cost of P100,000 or more
control large scale projects. controls complex but routine
projects. With the use of PERT/CPM, the project manager can obtain:
Event-Oriented <Orientation> Activity-Oriented 1. The graphical display of project activities.
Probabilistic <Activities> Deterministic 2. An estimate of how long the project lasts.
Time <Focus> Time and Cost Trade off 3. Determine which activities are the most critical to timely project completion.
Three times estimates <Estimates> One time estimate
4. Determine how long any activity can be delayed without lengthening the
High precision time <Suitable for> Reasonable time estimate
project.
estimate
Non-repetitive activities <Nature of Repetitive Activities
Three Phases of PERT/CPM
Job>
Research and Development <Usage> Construction Projects Planning
Projects Scheduling
Control-monitor
PERT/CPM
Control tool for defining the parts of the construction job and putting them Planning
together in a network form. Planning is defined as determining the relationship between the work operation
Only serves the project manager to see the whole picture of the entire job. and the sequence in which they are to be performed.
The Critical Path Method (CPM) offers the solution through a systematic
approach. The specific information provided by the CPM is enumerated as
follows:
1. Pinpoints particular focal work operations...
2. Provides means of speeding up a project without excessive cost for overtime.
3. Gives time leeway or float available for each of the non-critical work
operations.
4. Establishes time boundaries for operations with possibilities of change…
5. PERT/CPM indicates the earliest starting date for each work operation and
sub-contracts for the supply and delivery of materials.
6. Shows the most advantageous scheduling for all operations.
7. Offers a means of assessing the effect on the overall project variations in one
operation such as change orders.
8. Offers a means of rescheduling the operations but still to be completed at the
least increase in cost.
9. With the critical path schedule as revised to reflect the change order, any
claim if any, for additional payment will be understood both by the owner and
the contractor.
10. In case of serious delay due to weather, late material, or equipment delivery,
the network can be revised at that stage and new computation is made to
determine the new critical operation if any, and revised float times are
determined for the non-critical operations.
In any project construction undertakings, planning is the most important
consideration which includes:
1. Gather all the necessary input data to make the PERT/CPM work.
2. Planning phase is the main work of the contractor for being familiar and
knowledgeable of his costing methods of doing business.
3. The contractor can seek assistance for the accomplishment of his work
particularly the gathering of data, but his basic responsibility on this matter
cannot be delegated to any outsider group.
4. The contractor has a complete perception, experiences, resources, and
interest in getting the project done in the best possible time and cost.
5. The planning stages give the contractor a “Dry Run” on the construction of the
project.
6. If the contractor wants an effective approach and use of the construction
management, he must do it himself.
7. By performing the work personally, one obtains intimate first-hand knowledge
of the job and gain insight and details of anticipated problems.
Scheduling
Scheduling is defined as the process of translating the arrow diagram into time
table of calendar days. This is done by the day date table converting working
days into calendar days which permits the inclusion of weekends, holidays,
weather, and other time lost.
The PERT/CPM schedule shows the relationships between the operations and
the leeway limitations.
The PERT/CPM diagram should be updated periodically to account for:
1. Time discrepancies
2. Deliveries
3. Weather
4. Change Orders
5. Unexpected events or conditions
Updating of the diagram is based on the number of days the project is out of
schedule.
Controlling and Monitoring
Flexibility and updated re-computations brought about by changing conditions
are the keys to successful network programming.
1. The contractor is supplied with a time status report showing the overall status
of the project in general and in particular.
2. The contractor is provided with revised schedules that reflect the actual work
conditions and the project status.
3. The contractor is supplied with cost status reports showing how much money
is being disbursed for what type of expenses.
4. The contractor should be supplied with those reports as frequently as desired
or required to maintain control over the project.
In Planning Phase, there are five inputs that can be obtained:
1. A network diagram defining the activities in the project.
2. The duration of activities.
3. Cost estimates of the activities for monitoring cost, cash flow requirements.
4. Resource estimates THE NETWORK FUNDAMENTALS
5. Trade indicators (responsibility) for activity grouping.
Network Conventions Use of Network or Precedence Diagram
- main features of PERT/CPM
From the Schedule Phase, there are four outputs that can be obtained: - key in solving typical problems
1. The schedule of activities in the network shows the following: - clearly indicate which of the activities must be performed independently with
a. The Critical Activities each other
b. The Earliest Start date for each activity
c. The Earliest Finish date for each activity
d. The Latest Start date for each activity Network/Precedence Diagram
e. The Latest Finish date for each activity - composed of Arrows and Nodes
f. The Float refers to the amount of extra time available for an
activity
2. A Bar Chart or a Time Scaled Network Two Slightly Different Conventions for Making Network Diagram
3. A Resource Analysis
4. A Cash Requirement

The Control Monitor Phase uses actual data which includes:

1. Additions to the Project
2. Deletion from the project
3. Changes
4. Actual starting dates
5. Actual finishing dates Elements of Networking or Diagram

The Output Phase consists of the following:

1. Time status report
2. Revised schedules
3. Revised Bar Charts/Arrow Diagram or Network
4. Revised resource analysis
5. Revised cash flow predictions
6. Cost status reports

There are three major reasons for construction failure:

1. Unbalanced organization due to lack of planning and scheduling
2. Lack of financial planning
3. Poor cost control
 PRINCIPLE No. 2
That activity has a single definite starting point and a single definite ending
point. An arrow in the network must satisfy two basic questions: 1. What
activities must be completed before this one can start?
2. What activities cannot be started if this one is not completed?

Principles in Networking or Arrow Diagram

PRINCIPLE No. 1
That everything in the network or arrow diagram must have a meaning, thus;

PRINCIPLE No. 3
The network (arrow diagram) does not describe time relationships but rather
dependency relationships.
PRINCIPLE No. 4 Activities can either be:
That the network (arrow diagram) is hardly ever done by a single person. a. By their endpoints, such as 1-2; 2-4; etc.
b. By letter assigned to an arrow, such as a,b,c, etc.
- an accomplishment of the schedule is influenced by several numbers of people
who have something to do with the project and should be consulted when
making the network

Fundamental Elements of PERT/CPM Networking

ACTIVITY
-work operations required to complete a task or some cases, a segment of a DUMMY ACTIVITY
task. - actual work between events - an arrow or a network showing the dependent relationship
between two activities
- does not represent actual work efforts and do not consume
time
- may be used in the network to distinguish between two or
more parallel activities

DURATION OF AN ACTIVITY
- the time it takes an activity to be finished
EVENTS
- the normal time duration of a task
- a point signifying the beginning or end of one or more activities
- the span of time from:
- denotes the completion of all preceding or predecessor activities and the
a. Early Start to its Early Finish
beginning of one or more succeeding activities
b. Late Start to its Late Finish

PATH - a sequence of activities that leads from the starting node to the finishing
node

The EVENT is indicated on the network as any form of geological symbol with a
number written for identification.
Note:
a. Numbering the events follows the construction of the network
b. No two events shall have the same identification number
c. For this reason, one or more dummy activities may be used in a network a.) Path 1-2-4-6
b.) Path 1-3-5-6
PATH Comments:
1. The length of time of any path can be determined by adding the expected
time of the activities along the path.
2. The path ith the longest time, catches management interset because it
governs the project completion time.
3. In short, the expected duration of a project is equal to the expected time of
the longest path
4. If there are delays along the longest path, naturally there is also a
corresponding delay in project completion time.
5. Therefore any attempt to shorten the project completion time must
concentrate on the longest sequence of activities because of its relation to the
completion time.
6. The longest path is the critical path and its activities are called critical
activities.
7. Paths that are shorter than the critical path may experience some delay but
may not affect the overall project completion time as long the ultimate path
time does not exceed the length of the critical path.
8. The allowable slippage for any path is called path slack or float time. It
indicates the difference between the length of a given path and the length of the
critical path.
9. The critical path then has a zero slack or float.
RULES IN NUMBERING EVENTS IN A NETWORK DIAGRAM
1. All events should be numbered starting from left to right.
2. No event should be lower than the number of events preceding it (left or right
direction).
3. Event number shall increase from left to right.
4. Events should be numbered from top to bottom. Similarly, increasing should
be consistent from top to bottom or from bottom to top.
THE NETWORK DIAGRAM
Network Diagrams are a graphical portrayal of the activities and events of a
project.
• They show how each activity relates to others in the project, the sequence of
activities, and the need to perform some tasks before others.
PLANNING - is where the logical sequence of the job is to be performed.
Considerations:
1. Logic sequence must be correct
2. All phases of work should appear
3. Scope of work is correctly interpreted
Resources: Time, Manpower, Equipment, Money, and Facility
PLANNING OBJECTIVES
1. Represent graphically and properly sequence of the job.
2. Establish a medium for estimating resources necessary for each job.
3. Available sequential arrangement of jobs, accurate estimate of resources, and
alternative plan.
SCHEDULING
-secondary to planning.
-it is the process of allocating calendar dates to jobs based on the approved plan.
DEFINITION OF TERMS
Critical Path - longest route in the network of activities representing the project.
Critical Activities – activities along the critical path.
Earliest Event - it is the earliest time an event can happen sometimes called
Earliest Event Time or Early Event Time.
Numerically equal to the longest path of activities.
Earliest Start - is always equal to the earliest event at the beginning of an arrow
which is called i-node and the point of an arrow is called j-node.
i-node j-node
Early Start - not the point in time that the activity will be over, but the earliest
time that it can occur. The first day after physical assumption of activity.
Earliest Finish - is equal to its Earliest Start plus its duration of time.
EF = ES + Duration or EF = Early Event + Duration

Latest Event time - is the latest time event may occur.

LE = CP – longest path from project and event to event in question

Latest Finish - is activity cannot be later than the latest time of its j-node.
LS + D = LF or LS = LF – D

Total Float/Activity Total Slack - the span of time an activity can be delayed
after its earliest start time
LS – EF = Total Float or LS + D = (ES + D) or LS – ES = Total Float

Free Float - is the span of time activity can be delayed after its early start.
FF = ES - (ES + D)

Independent Float - is that portion of the activities Free Float that would remain
if all its preceding activities used up all their float
I.F. = ES - (LF - D)
When the result is negative, means there is no independent float.
I.F. = 0

COMPUTING THE EARLY START AND EARLY FINISH

After determining the value of each activity, proceed to…
1. Expected duration of the project
2. The slack time
3. Determine which activity falls under the critical path

RULES IN COMPUTING THE ES AND EF

Rule No.1:
The Earliest Finish for any activity is equal to its earliest starting time plus the
expected duration time.
EF = ES + t
Rule No. 2:
For nodes with one entering arrow, ES for activities at such node is equal to EF of
the entering arrow. For nodes with multiple entering arrows, the ES for activities
leaving such node is equals the largest EF of the entering arrow.
Contract, in the simplest definition,
a promise enforceable by law.
The promise may be to do something or to refrain from doing something.
The making of a contract requires the mutual assent of two or more persons,
one of them ordinarily making an offer and another accepting.
If one of the parties fails to keep the promise, the other is entitled to legal
redress.
The law of contracts considers such questions as to whether a contract exists,
what the meaning of it is, whether a contract has been broken, and what
compensation is due to the injured party.
What is a Contract?
An agreement between two private parties that creates mutual legal obligations.
A contract can be either oral or written. However, oral contracts are more
challenging to enforce and should be avoided, if possible.
A contract is an agreement between two or more parties creating obligations
that are enforceable or recognizable at law
It establishes an obligation of each party to fulfill what it is agreed to perform.
Obligations of the employer:
dami bag
1. Appointing of the engineer to administer the contract
2. Provision of the site
3. Provision of information, permits, and approvals
4. Providing funds and making payments in accordance with the contract
5. Participation
Obligations of the Contractor:  1. As the employer’s agent:
1. Execution and completion of the works and remedying any defects therein.
2. Provision of  b. Cost accountancy and payments
a. Labor, materials, plant, and equipment needed
b. Preparation of progress report
c. Works program for execution, and updating it whenever required
d. Setting out of the works
e. Measurement and/or assisting the engineer to do so
f. Records of his personnel and equipment
g. Sample of materials specified
h. Testing and re-testing
i. Temporary works
j. Facilities for other contractors working on the site
k. Keeping the site clean, and removing rubbish
3. The contractor is required to:
a. Sign the contract when he is called to do so
b. Obtain and submit securities, guarantees, and insurance policies
c. Ensure that his representatives will be available on-site at all times
d. Prepare and submit the contractor’s document, including “as-built
drawings” and manuals of operation and maintenance
e. Attend to the engineer’s instructions
f. Provide access to the employer’s personnel to enter the site
g. Prepare and submit payment statement and documentation
h. To uncover works for inspection when required
i. Rectify (Correct) defective works
j. Secure or compensate the employer against any claims
k. Submit notices to the engineer whenever he encounters
circumstances that may cause future claims
l. Getting approval before assigning sub-contractors or partners of the
works
m. Respond for consultation with the engineer
4. Comply with the applicable laws, labor law, and other local regulations.
Role of the Engineer:
Usually the employer will enter into a consultancy agreement with the engineer
to design and/or supervise the works.
The engineer shall have no authority to amend the contract.
Engineer role can be:
a. Administration of the contract – dealing with the procedures, provision of
information and interpretations, issuance of variations, approval of samples, etc.
2. As a supervisor:
The engineer must ensure that the work is being performed to fulfill the contract
documents.

3. As a certifier:
The engineer is required to certify or approve the payments that should be paid
by the employer to the contractor. Those payments should be made periodically,
mostly on monthly basis, and should depend on the number of works finished by
the contractor.
4. As a determiner:
The engineer must act as a mediator to help the parties towards agreement in
issues such as claims for reimbursement of costs or extension of time  Establish a clear notice to proceed date, a construction start date, and date of
5. Issuance of instructions and variations
Include: issuance of additional or modified drawings, actions in relation to
defective works, issuance of clarifications, giving approval, and ordering
variations.
It's important for parties entering into any significant economic transaction to
have written contracts.  This is especially true for construction projects which
are, by their nature, complicated.  A contract on a construction project sets
forth the parties' obligations to each other and determines how risks will be
shared or divided on the project.  important to make clear who has the authority to make legally binding decisions
These five essential elements of a construction contract can result in major
vulnerabilities if overlooked:
1. Full Name, Address, and Signatures of Both Parties
Though this may sound obvious, this commonly overlooked element of
construction contracts is required to make the contract legally binding. Without
the proper information or appropriate signatures on all required documents, it
will be difficult to get the contract to hold up in court.
2. Scope of Work
Although this is an element that is often included in most construction contracts,
many individuals tend to overlook the necessity for details. This area of the
contract should, in great detail, explain the services to be provided, including a
description of materials, quality, grade, schedule of work, and other
specifications pertinent to the construction of the property.
3. Project Cost and Payment Terms
This is an area of a construction contract that should be clearly and simply
stated. There should be no confusion as to the cost of services included and the
cost of services beyond the scope of the project. The schedule of payments, the
amount that is due, and the terms and conditions of payment should also be
clearly outlined in this section of the contract.
4. Schedule of Work
completion, and be sure to differentiate between calendar days and workdays. It
is also wise to include in the contract that you are not responsible for delays
caused by the property owner in obtaining the required permits, easements, and
approvals, or for delays as the result of bad weather. Make sure to account for
lead times from your suppliers, and if there are change orders, be sure to
document any additional time they will require.
5. Authority
With so many moving parts, it can become difficult to establish who has
authority to make decisions during a construction project. This is why it is
before project initiation. This simple element of the contract can save a lot of
headaches and confusion during the project.
Contracts are an important part of the process of any construction project.
A construction contract such as a JCT or NEC Contract provides important
protection for Main Contractors, Subcontractors, and Building Employers and is
vital in preventing disputes.  Primarily the contract safeguards against payments
and guarantees adequate work, but if a dispute arises, construction contracts
can also dictate how the parties move forward to resolve the issue. Simon
Dunkling, Director at Arbicon ADR Ltd, Construction Dispute Experts, explains
the importance of using a properly drafted written contract for construction
projects and the negative impact if the correct terms are not included.
Contracts:
The following are the various types of contracts, for the execution of civil
engineering works:
1. Item rate contract
2. Percentage rate contract
3. Lumpsum contract quantity of work to be done within a given period.
4. Labour contract
5. Materials supply contract 7. Cost plus percentage rate contract:
6. Piece-Work agreement In tendering for work on a “Cost Plus" basis, the contractor is paid the actual
7. Cost plus percentage rate contract cost of the work, plus an agreed percentage, in addition, to allow for profit.
8. Cost plus fixed fee contract
9. Cost plus fluctuating fee contract 8. Cost plus fixed fee contract:
10.Target contract In this type of contract, the contractor is paid by the owner an agreed lump-sum
amount over and above the actual cost of work.
1. Item rate contract:
For this contract, contractors are required to quote rates for individual items of 9. Cost plus Fluctuating Fee contract:
work on the basis of the schedule of quantities furnished by the client's In this type of contract, the contractor is paid by the owner the actual cost of
department. construction plus an amount of fee inversely variable according to the increase
or decrease of the estimated cost agreed first by both the parties.
2. Percentage rate contract:
In this form of contract, the client's department draws up the schedule of items 10. Target Contract: This is the type of contract where the contractor is paid on a
according to the description of items sanctioned in the estimate with quantities, cost-plus percentage of work performed under this contract. In addition, he
rates, units, and amounts shown therein. receives a percentage plus or minus on savings or excess effected against either
a prior agreed estimate of total cost or a target value arrived at by measuring
3. Lump sum contract: the work on completion and valuing at prior agreed rates.
In this form of contract, contractors are required to quote a fixed sum (lumpsum
amount) for the execution of work complete in all respects i.e., according to the JCT contracts facilitate the process of constructing buildings. In simple terms,
drawings, design, and specifications supplied to them with the tender within the contracts set out the responsibilities of all parties within the construction
specified time. process and their obligations, so it is clear as to what work needs to be done,
who is doing it, when are they doing it by, and for how much.
4. Labour contract:
This is a contract where the contractor quotes rates for the item work exclusive JCT is the UK’s leading producer of standard forms of contract, which work on
of the elements of materials that are supplied by the client's Department. the principle of adapting established benchmark provisions to suit a wide range
of projects.
5. Materials supply contract:
In this form of contract, the contractors have to offer their rates for supply of
the required quantity of materials, inclusive of all local taxes, carriage, and
delivery charges of materials to the specified site within the time fixed in the
A specification is a specific description of a particular subject. An engineering
tender.
specification contains a detailed description of all workmanship and materials
which are required to complete an engineering project in accordance with its
6. Piece-Work agreement:
drawings and details.
As the name signifies the piece-work agreement, it is that for which only a rate is
agreed upon without reference to the total quantity of work to be done or the
Purpose of Specification:
1. The cost of a unit quantity of work is governed by its specification.
2. work is carried out according to its specification and the contractor is paid
for the same. Any change in specification changes the tendered rate.
3. The necessity of specification is to verify and check the strength of materials
for a work involved in a project.
4. Specification is an essential contract document and is required for
Arbitration or court cases.
5. Specification is necessary to specify the equipments, tools, and plants to be
engaged for work and thus enables to procure them beforehand.
Principles of specifications:
1. Description of materials: The quality and size of materials required to
do an item of work shall be fully described for checking up at the site
according to the bindings provided in the specification.
2. Workmanship: Complete description of workmanship, the method of
mixing to the proportion, the method of laying, preparation of base or
surface, compaction, finishing, curing, etc. specifically applicable to the
item of work shall be clearly stated in different clauses.
3. Tools and plants: The tools and plants to be engaged to carry out work
shall be described. The method of operation and by whom to be
supplied shall be stated.
4. Protection of new work: The method of protection of new works
against damage or the method of curing if required, the test of
completed work, if necessary, shall be described in separate clauses
5. Expression: While writing a specification endeavor shall be made to
express the requirements of the specification clearly and in concise
form avoiding repetition and unusual words. The style of tense shall
remain the same throughout.
6. Clauses of specifications: As far as possible, the clauses shall be
arranged in the order in which work shall be carried out. This does not
mean to follow the works according to the order of arrangements but it
facilitates reference. While framing clauses for quality of materials,
workmanship, tools and plants, etc. practical possibilities shall be
realized.
General condition
It includes all parts of the construction that shall be finished with first-class
workmanship to the fullest talent and meaning of the plans and the
Specifications, and to the full satisfaction of the designing Architect and the
Project Owners.
Clearing the site
The construction site must be leveled to a reasonable grade in accordance with
the specifications. Plans, garbage, roots, and other perishable objects should be
removed.
STAKING OUT THE BUILDING LINES
Before any excavation begins, the building lines must be staked out and all lines
and grades specified on the designs must be precisely set. Batter boards with
construction reference marks should be installed in such a way that during the
excavation for the building's foundation, they would not be disturbed.
EXCAVATION FOR FOUNDATION
All excavation shall be made to grade indicated in the drawings. Where the
building site is covered with any kind of fill, the excavation for footings shall be
made deeper until the specified safe bearing capacity of the sale is reached.
BACKFILLING OF EXCAVATIONS
The material excavated from excavations will be used for backfilling them once
the foundation concrete has cured and can handle the pressure caused by fills.
CONCRETE WORKS
Concrete should be mixed thoroughly such that there is uniform distribution
among the cement and aggregates. The concrete should be vibrated and its
forms should be tapped as it is deposited to its final position to prevent the
formation of voids in the concrete member which will weaken the building.
PROPORTIONING OF CONCRETE MIX
AH concrete works for this project shall be undertaken in accordance with the
standard specifications for plain and reinforced concrete as approved by the
Government.
FORMS FOR CONCRETE WORKS
Forms for all reinforced concrete shall be adequately supported and braced or
tied together to maintain the correct positions and the shapes of poured
concrete. Wooden forms shall be constructed sufficiently tight to prevent the
bulging of concrete members upon pour1ng or leaking/draining of water during
curing.
STEEL REINFORCING BARS
Steel reinforcing bars to be used for this project shall consist of standard
deformed structural bars meeting ASTM specifications. The steel reinforcements
for concrete shall be formed accurately according to the sizes of the columns,
beams, girders, footings, slabs, etc., where they are to be used. They shall be
tied together at each bar intersection with Gauge No. 16 G.I wire or by welding.
CONCRETE HOLLOW BLOCKS
Concrete hollow blocks to be used in this project shall be specified or any other
brand of equal quality readily available in the locality. Use of such alternative
brand shall be approved by the Project Architect or Engineer and the Owners.
ROOFING FRAMING, ROOFING, AND ACCESSORIES
The materials to be used for the roof framing such as trusses, struts, and web
members shall consist of steel angles 1/4'' thick. Other accessories for the roof
frames are shown in the Details of truss Joints and in the Roof Framing Plan.
ELECTRICAL WORKS
Electrical works are induced in the electrical plans of the project which includes
Installed Voltage, wiring to be used, Wiring Devices, Panelboard, Intercom, and
TV Antenna wiring.
FLOOR FINISHES
The specified materials to be used as floor finishes for the different rooms of the
project are 12" x 12" Ceramic Tiles 8" x 8° Ceramic Tiles the Nara tiles 12'' x 1 2"
x 3/8" thick lately the red paving bricks.
BEDROOM CLOSETS AND KITCHEN CABINETS
All Bedroom closets and Kitchen cabinets shall be built as shown in the plans
furnished by the Architect.
PAINTING AND VARNISHING
All painting and varnishing work for this project shall be executed in first-class
workmanship using brand products. Surfaces should be thoroughly cleaned to
remove mortar, dust, grease, rust, and other foreign substances that may be
present on areas to be painted or varnished.

DOORS, WINDOWS, AND ACCESSORIES

All Interiors shall be installed on door jambs with at least 3 sets of standard
loose-pin hinges. For exterior doors, use 4 sets. size loose-pin hinges while the
entrance door lockset, with decorative dummy trim and deadbolt Foot bolts and
overhead barrel bolts, shall also be installed. The sliding doors for terraces
should be installed with rails and rollers. The sliding door panels shall be fitted
with deadbolts, barrels, and foot bolts.

PLUMBING WORKS AND FIXTURES

Plumbing works and materials shall be in accordance with the National Plumbing
Code of the Philippines. Soil and waste pipes shall be properly graded or pitched
downward to facilitate easy discharge of the solid and liquid wastes from the
plumbing fixtures.
CONSTRUCTION PROJECT ORGANIZATION
Organization and Management
Introduction
The driving force behind every organization is its management team. Different
teams operate in different ways. There is no universal accurate management to
define the one that is best. Some companies have shown steadiness for
maintaining a reputation of conservatism. Others have a dynamic reputation
built on rapid growth with impressive earnings.
What is Organization?
An organization – is a group of individuals who are cooperating willingly and
effectively for a common goal.
Organizations are structured to promote better management. However, it is the
performance of the people who fill the positions that determine the success of
an enterprise and not the organizational design itself.
Structural Organization- is the formal arrangements that are established to
coordinate all activities in order to implement a given strategy
The Structural Elements of an Organization
1. Men
2. Materials
3. Machine
4. Methods
5. Money
The Major Elements of Organizational Structures
1. Distribution of Functions- the functions to be performed, the groupings of
functions, and the vertical and horizontal task relationships among functions
2. Vertical and Horizontal Authority Relationships- who is the authority to do
what
3. Communication and Decision Processes- the manner in which formal decisions
are made and by whom
4. Policies- the decision, rules, or guidelines established
The common failure of management is its failure to adapt its organizational
structures, policies, and procedures, to the growth in size and complexity of the
enterprise. According to Peter Drucker, traditional structures are no longer
adequate for today’s complex organizations
Principles of Good Organization
1. Principle of Objective
2. Analysis
3. Simplicity
4. Functionalism
5. Departmentalization
6. Centralization of Authority and Responsibility
7. Limited Span of Control
Organization and Business
Business- is an organization of people with varied skills, which uses capital and
talents to produce goods or services, which can be sold to others for more than
their costs. Also considered as the system through which economic activity was
organized by those who seek to make a profit.
Most construction enterprises are selling the time of their workers, their
machinery, plant, equipment, and money. The efficient use of the time and
these assets will determine the amount of profit to be realized.
What is Management?
Management is a Process- it is the process of directing and facilitating people
for a common purpose.
Management is a Function- the function of getting things done through the
efforts of others. It is the application of authority and the assumption of
responsibility.
Management Concept
1. Management to be effective must be systematic- things can be done better by
means of the plan of action
2. Management to be successful must be scientific- by the application of the
scientific method to the study and analysis of the operations of a particular job,
me have discovered the best-known methods of performing the operation
3. Management must be humanistic- human being preferably should be led by
goals they accept as justifiable, worthy, and fair to all concerned
3. Willing to delegate and share with his subordinates the credit of a job well
done
4. Trains and develops his men to prepare them to assume delegated work
5. Knows how to control and plan his time 6. Institutes control for effective
performance

Executive Functions
Management Structures Managers do not do the actual work of an organization. His specific functions
The primary objective of management structure is to facilitate the coordination are:
and control over the activities of the company 1. to Plan
2. to Organize
3. to Direct
The line of responsibility works in two ways: 4. to Control
1. From the executive to the supervisor down to the workers under his
jurisdiction and conversely Planning
2. From the workers to those who are in authority over him the job of making things happen that would otherwise not occur

Management Control Plans may be classified as:

Control- as a verb is defined as “to check or regulate… to keep within limits.” 1. Objectives of the enterprise
Managerial control has a much broader interpretation, control may also include 2. Policies
activities that require restrictive or corrective action. 3. Procedures
4. Budget
Effective Communication System- an important element of executive control. 5. Programs
Adequate and reliable data are collected and disseminated to the proper
persons and units at the right time. Organizing- a good organization structure is necessary, improving the
organization will improve performance
To the manager, information has four purposes to serve. It must answer the
questions:
1. What are we going to do?
2. How well are we doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
Directing- is guiding and overseeing subordinates
The Manager In directing two processes enter the picture:
An effective manager must have the following qualities: 1. Leadership- the process by which an executive imaginatively directs,
1. Studies, analyzes, and dissects his job guides or influences the work of others in choosing and attaining
2. Knows how to delegate the administrative details of his job particular ends.
 2. Coordination- the process whereby an executive develops an orderly
pattern of a group effort among the subordinates
Control- is the process by which an executive gets the performance of his
subordinates to correspond closely as possible to chosen plans, orders
objectives, or policies.
Policies and Procedures
Policies- are general statements, which guide or channel the thinking and action
of members of an organization
Procedures- are a reflection of policy that involves the selection of a course of
action and applied to future activities
Executive Leadership
Executive Leadership is the bridge between objective and result. Success is the
result of good management and the responsibility for management is vested
primarily on the manager. He is the fellow who gets things done through the
efforts of others. He is the leader of the organization, and a good leader usually
makes a good manager.
New Concept of Leadership
The new concept of leadership today is a matter of service, not control. People
resist orders and dictate what they believe is just and fair to them. The ideal
leadership now is to aid communication and create a sense of unity, enthusiasm,
and cooperation among the members of a team.
Delegation of Authority Defined
Delegation of authority is the key to effective management. In order to have
control, the manager must have authority.
Authority- the power of an administrator to delegate functions to the next
ranking executive, who in turn transmit it to the employees who are charged
with the actual operations.
Responsibility and Authority Defined
Authority and responsibility must go together. But authority cannot be
delegated completely, it can only be shared. However, there are people who
constantly seek authority, but evade responsibility. This is called buck-passing.
Advises given by persons who do not share in the responsibility is f questionable
value. Decisions should result from the pooling of judgment of those who share
in the responsibility and authority under the situation in question.
Personnel Coordination
The company organization is dependent upon the special abilities and skills of its
personnel. In the establishment of leaders, supervisors, and foremen. Two
factors are significant:
1. The need for close supervision is judged by the skill of the workers and the
difficulty of the operations
2. The availability of experienced and trustworthy personnel capable of acting in
a supervisory capacity
The shortage of capable people in leadership and supervision is one of the
biggest difficulties encountered by companies, and this may be due to:
1. Lack of incentive
2. Inadequate or ineffective recruitment of those possessing potential leadership
ability
3. Insufficient training of present and potential supervisory personnel
Scientific Management
Frederick W. Taylor propounded the machine model or scientific management
theory with the following peculiarities:
1. Division of labor and specialization
2. Unity of command and centralization of decision making
3. One-way authority
4. Narrow span of control
The obvious strength of management science is its objective, quantitative
treatment of management problems. The treatment is characterized by:
1. A statement of the problem in mathematical form
2. Reliance on measurable quantities such as costs and income
3. Use of computers
4. Dedication to rational decision making
To be an effective executive, Engineers has five habits in mind:
1. They know where their time goes
2. They focus on outward contribution
3. They build on strengths
4. They concentrate on a few major areas where superior performance will
produce outstanding results
5. Engineers finally make effective
Humanistic
Humanistic management is universally applicable. Employees who are given
definite goals will clearly understand what they should concentrate on. They
know what is expected and the standards by which they will be measured.
According to Matsushita, for a corporation to achieve its objectives, it must all
else, succeed in cultivating its human resources.
Five Key Points to Success in Enterprise Management
1. To have a clear management philosophy, clear goals, and definite ideal 2. To
manage a company with the full realization that every enterprise is a public
enterprise
3. To practice open management
4. To collect the wisdom of many
5. To try your best to acquire an unflappable and supremely adaptable mind to
enable you to see things as they actually are without clinging to preconceived
notions
Directing People on the Job
When to have written order?
1. When precise figures or complicated details are involved
2. When orders must be passed to someone else
3. When the workers involved are slow to understand and forgetful
4. When you want to hold the receiver strictly accountable
5. When a particular sequence must be followed exactly
6. When a notice board can be suitable used
7. When you are quoting general instructions on higher authority
8. When a record is desirable, perhaps the order may need to be referred to in
the future
Whether verbal or written, every order will fall into one of the four distinct
categories:
Ø A request
Ø A suggestion
Ø Asking for volunteers
Ø A direct order
Request- the leader asks the follower to act as the leader wishes
You should request whenever you want specific action from the people like
these:
1. Anyone who is interested in his work. An older person, touchy.
2. Someone who welcomes responsibility
3. Someone who is interested in advancement
4. A group of experienced personnel with good morale
5. Someone whose initiative you want to develop

What is an Order? Asking for Volunteers- the leader explains what is to be done and asks for
Order- is a specific message conveyed by a leader to a follower for the purpose volunteers to do it.
of influencing the follower to take the desired action. Orders are either verbal or
written. You should ask for volunteers for:
1. Jobs that are dangerous or disagreeable
When to use verbal orders? 2. For extra heavy work
1. When the order is simple and the message can be clearly heard 3. For jobs that require overtime
2. When privacy is important 4. When you want a skilled worker to do a special unskilled job
3. When the follower is intelligent and reliable
4. When a demonstration is involved
Direct Order or Command- this is the last alternative.
You should only use it under the following circumstances:
1. In case of danger or extreme urgency
2. When haste is important
3. With lazy and indifferent workers, chronic objectors
4. For careless workers
5. When all methods have failed repeatedly
Guiding Principles on How to Phrase Orders Effectively
Orders should be:
1. Clear- phrase it in simple terms and repeat anything that might be forgotten
or misunderstood
2. Complete- answer all the questions who, what, when, where, and why
3. Concise- make it short enough for the receiver to be able to repeat it
4. Acceptable- ensure that the receiver sees it as justified, practical, tactful,
challenging, and accompanied by sufficient authority
Always remember that every order has three meanings:
1. The meaning you think you convey
2. The meaning you do convey, directly and by implication
3. The meaning the receiver thinks you convey
2. When privacy is important
3. When the follower is intelligent and reliable
4. When a demonstration is involved
When to have written order?
1. When precise figures or complicated details are involved
2. When orders must be passed to someone else
3. When the workers involved are slow to understand and forgetful
4. When you want to hold the receiver strictly accountable
5. When a particular sequence must be followed exactly
6. When a notice board can be suitable used
7. When you are quoting general instructions on higher authority
8. When a record is desirable, perhaps the order may need to be referred to in
the future
Knowledge Workers and Manual Workers
Manual Worker- needs only efficiency, that is, the ability to do things right
rather than the ability to get the right things done. The manual work can always
be judged in terms of quantity and quality of a definable and discrete
accomplishment.
Knowledge Worker- does not produce a thing, instead, he produces good ideas,
information, and concepts. He is a specialist.

How to Give Effective Orders

1. Clarify your objective Illustrative Hierarchical Structure of Management Functions
2. Obtain favorable attention
3. Make it simple and specific
4. Phrase it tactfully for best results
5. Explain why it should be done your way
6. Learn how much information and guidance he needs
7. Let him have it
8. Inspire his confidence in you and the correctness of your order
9. Note his readiness to act
10. Give him faith in his ability to carry it out

When to use verbal orders?

1. When the order is simple and the message can be clearly heard
The Matrix Organization in an Engineering Division

Coordination between Owner and Consultant

What is crashing in project management?
Crashing in project management is a method used to speed up a project’s
timeline by adding additional resources without changing the scope of the
project.
What is a cost plan in project management?
Cost planning is an essential part of the project management process. A cost
plan is used as a way of controlling the estimated costs during the design and
construction phase of a project.
Reducing Time and Cost
The activity time for project constructions is normally estimated for some given
level of resources. However, on several occasions, the length of the project time
of activities, were reduced, by injecting additional resources.
The urgent desire to shorten project construction time is influenced by the
following factors:
1. To avoid penalties for not completing the project on time.
2. To take advantage of monetary incentives for completing the project on or
before the target date.
3. To free resources such as money, equipment, and men for use on other
projects.
4. Reduce indirect costs associated with the project such as:
a. Facilities and equipment cost
b. Supervision cost
c. Labor cost
d. Personnel cost
The manager must have certain options at his command that will allow
shortening of the time referred to as “Crashing Certain Activities” and the most
obvious options are:
1. The use of additional funds to support the following
2. Additional personnel
3. Have more efficient equipment
4. Relaxing of some work specification
The goal in evaluating the time cost-trade-off is to identify a plan that will
minimize the amount of direct and indirect project costs. This will aid the
manager in making a rational decision on which activities if any to be crashed
and to what extent will the crashing be possible.
The manager needs the following information:
1. Regular time and crash time estimates for each activity
2. Regular cost and crash estimate for each activity
3. A list of activities that are on the critical path
Those activities on the critical path are potential candidates for crashing. The
shortening of non-critical activities will not have an impact on the total project
duration.
From the economic view, activities should be crashed according to crashing
costs;
1. The lowest cost should be crashed first
2. Crashing should continue as long as the cost to crash is less than the benefits
received from crashing.
These benefits might be in a form of incentive payments for early project
completion as part of the government contract or they might reflect saving in
the indirect project costs or both.
Procedure in Crashing Project Time
1. Obtain an estimate of regular and crash time plus the costs of each activity.
2. Determine the length of all paths and their float time.
3. Determine which activities are on the critical path.
4. Crash the critical activities in the order of increasing costs as long as crashing
costs do not exceed benefits.
There are instances where two or more paths may become critical as the original
critical path become shorter so that the next improvement will require
simultaneous shortening of two or more paths. In some instances, it is more
economical to shorten an activity that is on two or more of the critical paths.
This is correct if the crashing cost for a joint activity is less than the sum of
crashing one activity on each separate path.
Example 1 Path 1-3-4-5-6 (C-D-E-F) = 26 days
From the following data, develop an optimum time cost plan assuming that the
indirect cost is P10,000 3. Rank Critical Path from lowest Crashing Cost
Activity Normal Time Crash Time Cost per day to Critical Path Activity Cost per day to Available
Crash Crash Days/Crash Limit
A 8 8 (Normal Time-
B 12 10 P6,000 Crash Time)
C 7 6 P2,000 1-3-4-5-6 C 2,000 1
D 6 2 P6,000 E 4,500 2
E 9 7 P4,500 D 6,000 4
F 4 2 P7,000 F 7,000 2
Table-1
4. Start shortening the project one day at a time from Activity with lowest
Crashing Cost: Activity C
5. Crashing Activity C by 1 day: = 26 – 1 = 25 days

Path 1-2-5-6 = 8+12+4 = 24days

Path 1-3-4-5-6 = 6+6+9+4 = 25days *

6. Crashing Activity E (Crashing next activity with least cost per day to
crash): 25 - 1 = 24days

SOLUTION:
1. Find the length of the activities in each path
Path 1-2-5-6 (A-B-F) = 8+12+4 = 24 days
Path 1-3-4-5-6 (C-D-E-F) =7+6+9+4 = 26 days *

2. Find the critical path

7. Rank Critical Path
(Two Critical Path 1-2-5-6 and 1-3-4-5-6)
Critical Path Activity Crash Cost per Crash Limit
Day
1-2-5-6 (A-B-F) A No possible 0
reduction
B P6,000 * 2
F P7,000 2
1-3-4-5-6 C No possible 0
(C-D-E-F) reduction
D P6,000 4
E P4,500 * 1
F P7,000 2

8. Crashing activity B and E is not possible

The cost of crashing B and E is 6,000 and 4,500 respectively for a total of P10,500 Tabulated Crashing
an amount that exceeds the project cost of P10,000 per day. Path Length after Crashing n days
N=0 1 2 3
9. Crashing Activity F: 24 – 1 = 23days A-B-F 24 24 24 23
C-D-E-F 26 25 24 23
Activity: …… C E F
Crashed…. …… P2,000 P4,500 P7,000
Cost….

Network Diagram after Crashing

Path: 1-2-5-6 = 8+12+3 = 23 *
Path: 1-3-4-5-6 = 6+6+8+3 = 23 *
CONSTRUCTION ESTIMATES AND VALUES ENGINEERING
Construction Estimate?
 It is the process of anticipating the expense of building a physical
structure.

 This step is essential, and one of the most crucial in the construction
process.

 Estimators need to be as accurate as possible because profit margins

(the livelihood of contractors) are impacted if any estimated direct and
indirect costs for the project are off by even the slight amount.

TYPES OF CONSTRUCTION ESTIMATE

ROUGH ESTIMATE - This is an estimate where you’re just looking to get in the
ballpark range for a project. PRELIMINARY ESTIMATE - Created when a project’s deliverables are about
halfway defined, a preliminary estimate uses somewhat detailed scope
information to incorporate unit costs.

INTERMEDIATE ESTIMATE - An intermediate estimate can be created using

stochastic or parametric techniques when a project is defined to some limited
extent.

TYPES OF CONSTRUCTION ESTIMATE

 WHY DO WE NEED TO STUDY COST ESTIMATES?

 Cost estimating is one of the most important steps in project

management. A cost estimate establishes the baseline of the project
cost at different stages of development of the project. A cost estimate
at a given stage of project development represents a prediction
provided by the cost engineer or estimator on the basis of available
data.

TYPES OF CONSTRUCTION COST ESTIMATE

DESIGN ESTIMATE
For the owner or its designated design professionals, the types of cost
estimates encountered run a parallel with the planning and design as
follows:
SUBSTANTIVE ESTIMATE
- A substantive estimate uses a reasonably finalized project design to create a
-Screening Estimates
fairly accurate cost estimate based mainly on unit costs.
FINALIZED/DEFINITIVE ESTIMATE -Preliminary Estimates
- Drafted when a project’s scope and constituent tasks are almost fully defined, a -Detailed Estimates
definitive estimate makes full use of deterministic estimating techniques, such as -Engineer's Estimates
bottom-up estimating.

BID ESTIMATE
For the contractor, a bid estimate submitted to the owner either for
competitive bidding or negotiation consists of direct construction cost
including field supervision, plus a mark up to cover general overhead
profits. The direct cost of construction for bid estimates is usually
delivered from a combination of the following approach:

-Subcontractor Quotations
-Quantity Takeoffs
WHAT IS A COST ESTIMATE? -Construction Procedures

 A cost estimate is the approximation of the cost of a program, project,

or operation. The cost estimate is the product of the cost estimating
process. The cost estimate has a single total value and may have
identifiable component values.
 CONTROL ESTIMATE PARAMETRIC ESTIMATION - It covers historical data that will be taken as
For monitoring the project during construction, a control estimate is PARAMETER or variable to calculate estimates. The accuracy level of parametric
derived from available information established: kind of estimation is better than the estimations done using analogous
estimation.
-Budget estimate for financing
-Budgeted cost after contracting but prior to construction BOTTOM-UP ESTIMATION - Also called analytical estimating, this is the most
-Estimated cost for completion during the progress of construction. accurate estimating technique - if a complete work breakdown structure is
available. is a technique in project management for estimating the costs or
duration of projects and parts of a project.
COST ESTIMATING KEY COMPONENTS
THREE-POINT ESTIMATION - Three-point estimating has roots in a statistical
method called the Program Evaluation and Review Technique (PERT), which is
DIRECT COST
used to analyze activity, project costs, or durations by determining optimistic,
Direct costs are costs and expenses that are accountable directly for a
pessimistic, and most likely estimates for each activity.
specific activity in construction work. Some examples of direct costs
are:
-Materials
-Field workers (labor)
-Equipment

INDIRECT COST
Indirect costs are expenses of items that are not allocated directly for
specific construction activities. These are called overhead costs.
Examples of project overhead expenditures are:

-Quality Control
-Security Costs
-Utilities
-Administrative Costs
-Temporary Structures
-Legal Fees & Permits Labor Cost
- An important value that finance and accounting professionals calculate to
CONSTRUCTION COST ESTIMATION TECHNIQUE determine the direct and indirect price that a company pays for labor.
- The total of wages, benefits, and payroll taxes paid to and for all employees.
ANALOGOUS ESTIMATION - Analogous estimating draws from a purpose-built
archive of historical project data, often specific to an organization. - Construction cost percentage ranges from 20%-30% and will still increase
depending on some conditions.
 Equipment Cost
3 Labor Classification: Formulas
General workers / casual workers Total capital cost per hour = (equipment’s sale price x percent sale tax + life loan
Skilled labor financing) / total life expectancy of the equipment in motor-hours
Foreman/supervisor *Add the annual cost for licensing, insurance, and taxes

Annual ownership = total fees / expected hours of use

LABOR COST
Operation cost = (gallons per hr. x cost per gallons) + (fluid change (hrs.)/cost
What’s your base rate? per change) + miscellaneous parts
The unit price that’s established for labor
Equipment maintenance = (repair cost / total life expectancy) + shop overhead
Example: Rental rate = Total capital cost per hour + Annual ownership +
Foreman = P100/hr. Operation cost + Equipment maintenance
Mason = p 50 / hr. Materials Needed for Estimation
Helper = p 35 / hr.  Complete set of drawings of project plans
p185 / hr. (base rate)  Specifications relating to the project
 Architect’s scale
What is Labor Burden?  Scientific calculator
Cost of each employee outside of their hourly wage  Pencils and papers
 Data about the building materials
Example: A P100 an hour foreman that can work 2080 hrs. a year and can be out  Estimating worksheets
for 15 days because of holidays.  Construction contract
Off days x (No. of shift hrs./day) = Annual hrs.
15 days x 8 hrs. = 120 hrs.
Total annual hrs. – Est. annual hrs. = Yearly hrs.
2080 hrs. – 120 hrs. = 1960 hrs.
* Add all the worker’s benefits = labor burden

What is the labor rate?

The labor rate pricing is determined by adding the hourly rates of the
employees who will be working on a single project.
Lr = crew’s hourly rate + labor burden + mark up
Determining Labor Cost
Crew’s hourly rate X (amount of workers) X (number of weeks) X (hours per
week) = labor cost of the project
VALUES ENGINEERING
 Value Engineering is a systematic process used by a multidisciplinary
team to improve the value of a project through the analysis of its
functions. Value is defined as a fair return or equivalent in goods,
services, or money for something exchanged. Value is commonly
 represented by the relationship:
COMMONLY USED VALUE TECHNIQUES
 VALUE MANAGEMENT (VM) - The full range of value techniques
available. It is a higher-order title and is not linked to a particular
project stage at which the value technique may be applied.
 VALUE PLANNING (VP) - Value techniques applied during the planning
phases of a project.
 VALUE ENGINEERING (VE) - Value techniques applied during the design
or ‘engineering phases of a project.
 VALUE ANALYSIS (VA) - Value techniques applied retrospectively to
completed projects to analyze or audit the project’s performance.
VALUE ENGINEERING STAGES
PLANNING STAGE
-Is the earliest aspect of development and is an important part of maintaining
solid communication in construction projects
-Defining key goals, objectives, and criteria for the project
-Functional analysis of the facility
-Review of all utility and material options
-A projected budget for the project
-Ideation of alternative and sustainable solutions
DESIGN STAGE
 During the design stage, all parties come together to review the
projected design plan. The purpose is to review all of the project
elements such as the design plans, estimated costs, projected timeline,
and the best value options.
METHODOLOGY STAGE
 The last and final stage is the methodology stage, which is broken up
into eight phases which is called the Job Plan. Each step involves critical
analysis and elimination to come to a solid understanding of what
alternatives are going to be best.
VALUE METHODOLOGY
 A systematic process used by a multidisciplinary team to improve the
value of projects through the analysis of functions.
 Value methodology is applied using a process known as the "Job Plan".
The purpose of the Job Plan is to guide the Value Study Team through
the process of identifying and focusing on key project functions in order
to create new alternates that will result in value improvements.
JOB PLAN
The purpose of the Job Plan is to guide the Value Study Team through the
process of identifying and focusing on key project functions in order to create
new alternates that will result in value improvements. The Job Plan consists of
the following sequential phases:
 4. EVALUATION (ANALYSIS) PHASE - Check the Functionality vs Cost

- Process to select those alternates that offer the potential for value
improvement while delivering the project's function.

5. DEVELOPMENT PHASE

- Develops the selected ideas into alternatives (or proposals) with a sufficient
level of documentation to allow.

- Decision-makers to determine if the alternative should be implemented

6. PRESENTATION PHASE

- The Value Team Leader develops a report and/or presentation that documents
and conveys the adequacy of the alternative(s) developed by the team and the
THE SIX-STEP JOB PLAN associated value improvement opportunity.
1. INFORMATION PHASE
- Open space no neighboring structure
- Facade is made of fully tempered glass capable of resisting wind load ELEMENT OF VALUE ENGINEERING
- It cost four (4) times more than ordinary glass. Selection
Value engineering need not be applied to everything. The areas selected are
2. FUNCTION ANALYSIS PHASE those which should yield the greatest results for the suitable least time and
- Functionality effort and with the minimum risk.
- Cost involves
- Maintenance cost Information
An essential ingredient and time must be allowed for the relevant costs,
3. SPECULATION (CREATIVE) PHASE - To cut the cost but to gain the same specifications and requirements to be collected, analyzed, and prepared ready
result. for the use of the designer or team.
- Use secondary gauge by reducing the size of glass panels, this is by introducing
narrowed frame to avoid hindering the view. Analysis
- Re-configuring the facade such as inclined surface to reduce wind load - The analysis of information takes two basic forms in value engineering: Cost
concentration. forms of Analysis and Functional Analysis.
- Propose a roof deck using lightweight concrete to minimize the cost of Cost Analysis - is the most usual preliminary to selecting and fixing the
upgrading the foundation. scope of a study.
Functional Analysis - require an accurate definition of the functions
performed by the subject under investigation.
 The collective purpose of the committee would be to review progress and to
direct and guide the value engineering program to achieve greater profitability
in the short and long term.
Teamwork
The element of teamwork in value engineering is not intended as a substitute for
individual skills. The effectiveness of value engineering teamwork results from
using the people Combining who are normally concerned with the product and
concentrating their skills collective abilities and experience.

Procedure
The procedures used in value engineering saves time have been devised with a
view to controlling and concentrating the scarce resources in skills and
knowledge, in the most effective manner.

Attitudes
The positive attitudes which proper training and guidance can bring about at the
operating level must be a reflection of similar attitudes from senior
management.

MANAGEMENT’S ROLE IN VALUE ENGINEERING PROGRAMME

SUPPORT AND DIRECTION
- The support and direction of directors and senior managers are essential for
the satisfactory introduction and operation of a value engineering program. This
support should not only be given, it must be seen to be given.

IMPLICATIONS
The management team must fully understand the implications of the
introduction of value engineering into their business. This means that it should
be a seek explanation of the technique and its potential.

RESOURCES
Management must be prepared to make a small but adequate investment for
the high returns which are obtainable from value engineering. They will need
other resources to service the operation and introduce certain minor
administrative changes.
STEERING COMMITTEE