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 Warning

Although construction costs can be planned and estimated, they also can significantly change
during the course of actual construction. Even the smallest changes to design and scope can
lead to drastic cost changes due to having to rework a completed portion of the project. The
best way to meet original cost planning estimates is to limit the amount of design change that
occurs on a project.

Cost control

Cost control is an obvious objective in construction management and construction scheduling.

It should be recognized that no amount of paperwork achieves this construction cost control.
The actual control is achieved through the ultimate decision of the manager that something
should be done differently and the translation of that decision into practice. The paperwork
provides guidance on what control actions should be taken and therefore it is rather a cost
information system

The element of a cost control system is:

 Observation
 Comparison of observation with some desired standard
 Corrective action to take if necessary.

A construction cost control system should enable a manager to observe current cost levels,
compare them a standard plan or norm, and institute corrective action to keep cost with in
acceptable bound.

The system should help to identify where correction action is necessary and to provide pointers
as to what action should be.

Most construction cost control systems have an inordinately long response time. Even the best
cost control system would provide information on what was happening last week or last month.
Since, in construction project some activities might finish in a week or month, then nothing
could be done if the performance of such activities was reported to overrun estimates of
respective cost

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Monitoring of construction and installation work

Monitoring of construction involves regular site visits to check the quality, accuracy and
progress of the work. Problems encountered can be investigated and resolved. Such problems
may be due to unexpected obstructions buried in the ground that were unknown until the
contractor started to excavate.

What benefits would a specialist bring?

 Appropriate training and experience to assess the quality of the work, and conformity to
the plans
 Experience and knowledge of legislation to consider problems arising and determine
appropriate alterations to the design
 A lot of detail is required for monitoring to be effective, so suitable experience can save
a lot of time

The construction work should be examined regularly to ensure that it is in accordance with the
plans and specifications. It is very easy for faulty work to be buried so that no one is the wiser -
until the contractor has left the site and you are left with the problems! For example concrete
can look much the same to the untrained eye, despite being of very different strengths and
durability. The earlier such faults can be detected, the easier it is likely to be to resolve the
problem. Because of our range of experience, we would be more likely to spot such problems,
and be able to specify how they should be resolved.

While carrying out the work, your contractors may find something that was not expected.
Before the ground is excavated, it is difficult to know exactly what is underneath the surface.
For example, pipes may not be where they were thought to be, or there may be an unexpected
variation in ground conditions. To accommodate this, your project would need to be adjusted
while still conforming to the regulations and your intentions. Our knowledge of the regulations
and the design philosophy would enable us to make the necessary adjustments quickly whilst
minimizing their costs.

Building contractors may not have had experience of filling station work before. It can often
help them to have someone on site to discuss what is involved. Our practical experience
enables us to fulfill that role.

Our practical experience of building and fuel equipment installation ensures that we are well
placed to monitor the construction of your project. Whether or not we are your designer, we
could still monitor the construction for you if required.

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Cash flow

Cash flow is the life line of a business. Many start-up companies fail because of insufficient cash
flow. From the perspectives of both owner and contractor, managing cash flow is vital to a
successful project. Cash flow is where the project cost meets the schedule. Cash flow
projections developed from credible project execution plans become the basis of project
controls. Combining the cash flow and earned value technique, a project can track the real
status of progress and detect any early cost deviation. A poor cash flow projection could lead to
an inability to fund the project or impose undue stress to the project execution team.

A project typically goes through multiple phases prior to the final approval. Cost estimates,
schedule and an execution plan are developed at each phase. Cash flow projection is also
prepared to support funding decision at each phase. The sophistication of cash flow projection
increases as it moves toward the final project approval. Each project is unique in its execution
and hence in its cash flow projection. However, there are basic concepts that are applicable to
development of any cash flow projection. This paper describes simplified tools that will
facilitate the cash flow projection.

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TASK 04

Discuss the methods employed to plan, schedule and manage the supply and
utilization of resources (P13)

Concepts in the Development of Construction Plans

Construction planning is a fundamental and challenging activity in the management and

execution of construction projects. It involves the choice of technology, the definition of work
tasks, the estimation of the required resources and durations for individual tasks, and the
identification of any interactions among the different work tasks. A good construction plan is
the basis for developing the budget and the schedule for work. Developing the construction
plan is a critical task in the management of construction, even if the plan is not written or
otherwise formally recorded. In addition to these technical aspects of construction planning, it
may also be necessary to make organizational decisions about the relationships between
project participants and even which organizations to include in a project. For example, the
extent to which sub-contractors will be used on a project is often determined during
construction planning.

Forming a construction plan is a highly challenging task. As Sherlock Holmes noted:

Most people, if you describe a train of events to them, will tell you what the result would be.
They can put those events together in their minds, and argue from them that something will
come to pass. There are few people, however, who, if you told them a result, would be able to
evolve from their own inner consciousness what the steps were which led up to that result. This
power is what I mean when I talk of reasoning backward.

Like a detective, a planner begins with a result (i.e. a facility design) and must synthesize the
steps required to yield this result. Essential aspects of construction planning include the
generation of required activities, analysis of the implications of these activities, and choice
among the various alternative means of performing activities. In contrast to a detective
discovering a single train of events, however, construction planners also face the normative
problem of choosing the best among numerous alternative plans. Moreover, a detective is
faced with an observable result, whereas a planner must imagine the final facility as described
in the plans and specifications.

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In developing a construction plan, it is common to adopt a primary emphasis on either cost

control or on schedule control as illustrated in Fig. 9-1. Some projects are primarily divided into
expense categories with associated costs. In these cases, construction planning is cost or
expense oriented. Within the categories of expenditure, a distinction is made between costs
incurred directly in the performance of an activity and indirectly for the accomplishment of the
project. For example, borrowing expenses for project financing and overhead items are
commonly treated as indirect costs. For other projects, scheduling of work activities over time
is critical and is emphasized in the planning process. In this case, the planner insures that the
proper precedence among activities is maintained and that efficient scheduling of the available
resources prevails. Traditional scheduling procedures emphasize the maintenance of task
precedence (resulting in critical path scheduling procedures) or efficient use of resources over
time (resulting in job shop scheduling procedures). Finally, most complex projects require
consideration of cost and scheduling over time, so that planning, monitoring and record
keeping must consider both dimensions. In these cases, the integration of schedule and budget
information is a major concern.

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Estimating Resource Requirements for Work Activities

In addition to precedence relationships and time durations, resource requirements are usually
estimated for each activity. Since the work activities defined for a project are comprehensive,
the total resources required for the project are the sum of the resources required for the
various activities. By making resource requirement estimates for each activity, the
requirements for particular resources during the course of the project can be identified.
Potential bottlenecks can thus be identified, and schedule, resource allocation or technology
changes made to avoid problems.

Many formal scheduling procedures can incorporate constraints imposed by the availability of
particular resources. For example, the unavailability of a specific piece of equipment or crew
may prohibit activities from being undertaken at a particular time. Another type of resource is
space. A planner typically will schedule only one activity in the same location at the same time.
While activities requiring the same space may have no necessary technical precedence,
simultaneous work might not be possible. Computational procedures for these various
scheduling problems will be described in Chapters 10 and 11. In this section, we shall discuss
the estimation of required resources.

The initial problem in estimating resource requirements is to decide the extent and number of
resources that might be defined. At a very aggregate level, resources categories might be
limited to the amount of labor (measured in man-hours or in dollars), the amount of materials
required for an activity, and the total cost of the activity. At this aggregate level, the resource
estimates may be useful for purposes of project monitoring and cash flow planning. For
example, actual expenditures on an activity can be compared with the estimated required
resources to reveal any problems that are being encountered during the course of a project.
Monitoring procedures of this sort are described in Chapter 12. However, this aggregate
definition of resource use would not reveal bottlenecks associated with particular types of
equipment or workers.

More detailed definitions of required resources would include the number and type of both
workers and equipment required by an activity as well as the amount and types of materials.
Standard resource requirements for particular activities can be recorded and adjusted for the
special conditions of particular projects. As a result, the resources types required for particular
activities may already be defined. Reliance on historical or standard activity definitions of this
type requires a standard coding system for activities.

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Resource Requirements for Block Foundations

In placing concrete block foundation walls, a typical crew would consist of three bricklayers and
two bricklayer helpers. If sufficient space was available on the site, several crews could work on
the same job at the same time, thereby speeding up completion of the activity in proportion to
the number of crews. In more restricted sites, multiple crews might interfere with one another.
For special considerations such as complicated scaffolding or large blocks (such as twelve inch
block), a bricklayer helper for each bricklayer might be required to insure smooth and
productive work. In general, standard crew composition depends upon the specific construction
task and the equipment or technology employed. These standard crews are then adjusted in
response to special characteristics of a particular site.

Pouring Concrete Slabs

For large concrete pours on horizontal slabs, it is important to plan the activity so that the slab
for a full block can be completed continuously in a single day. Resources required for pouring
the concrete depend upon the technology used. For example, a standard crew for pumping
concrete to the slab might include a foreman, five laborers, one finisher, and one equipment
operator. Related equipment would be vibrators and the concrete pump itself. For delivering
concrete with a chute directly from the delivery truck, the standard crew might consist of a
foreman, four laborers and a finisher. The number of crews would be chosen to insure that the
desired amount of concrete could be placed in a single day. In addition to the resources
involved in the actual placement, it would also be necessary to insure a sufficient number of
delivery trucks and availability of the concrete itself.

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TASK 5

Briefly explain how quality managed and quality standards and statutory
compliance are achieved in a project (P14)

Construction Quality Control

Construction quality assurance is a necessary process that is followed during any construction
activity such as construction of residential or commercial buildings, roads, industrial buildings,
manufacturing plants, sports stadiums, flyovers, bridges and so on. Assurance and monitoring
of quality in any of the above construction process is very important as even a minor defect in
the quality can cause a lot of serious problems. Any lapse could also cause damage to the
property. The cost of quality is very high especially in the case of structures

Quality Management

The term Quality management has a specific meaning within many business sectors. This
specific definition, which does not aim to assure 'good quality' by the more general definition
(but rather to ensure that an organization or product is consistent), can be considered to have
four main components: quality planning, quality control, quality assurance and quality
improvement. Quality management is focused not only on product/service quality, but also the
means to achieve it. Quality management therefore uses quality assurance and control of
processes as well as products to achieve more consistent quality.

Quality management will ensure the effective design of processes that verify customer needs,
plan product life cycle and design, produce and deliver the product or service. This also
incorporates measuring all process elements, the analysis of performance and the continual
improvement of the products, services and processes that deliver them to the customer.

Different Steps in Construction

Define Requirements

The first step for assurance of quality in the construction business is to define the requirements
of the customer. Based on the exact requirements, the structural designs of the buildings or
structures are developed. During the design phase, all the material that would be used in the
construction is also decided. The quality standards of the structure are defined to decide the
subsequent stages of the construction quality assurance process. Various soil and site tests are
conducted to check the climatic conditions and terrain of the site. During construction it is

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necessary to conform to various environment protection laws. Considering them at this stage
would help in proper planning of the design and deciding the materials that would be used. It
should be ensured that the construction activity causes minimal sound pollution, no pollution
to the nearby water bodies and zero inconvenience to people living nearby.

Material Requirements

During this stage, all the material and supplies that would be required in the construction
process are listed along with their respective specifications. The specific brand and certification
of the products and supplies which should be used in the construction are also specified.
Utmost care is taken during this stage to ensure that the specified materials meet the design
and quality requirements as defined.

Planning

Once the design and material specifications have been decided, the next step is to plan the
workflow for the successful completion of the task. Various tenders are invited for getting the
supplies of the building material. The entire process is documented for future reference.

Material Testing

Before using the construction material, the materials are tested. The procedure includes testing
the tensile strength of steel, compressive strength of bricks and mortar etc. The materials can
be tested by internal laboratories or by third party laboratories. Various work quality standards
issued by institutes and are used. Based on the trial results, the material is approved or
disapproved.

Quality during Construction Phase

Adherence to quality standards that have been decided in the preceding stages is important.
Various constructions QA measures are taken to ensure that there is no breach of any quality
requirements at this stage. The quality of workmanship is also checked. Various kinds of tests
are conducted to ensure conformance. Quality is checked with the aid of internal and external
audits. If quality at any stage is not as per standard, then the cause is determined and
accordingly rework is undertaken.

In short, quality cannot be neglected in construction industry, as the cost of the rework is quite
high. Also, the damage that can happen due to poor quality can be very huge. During
construction QA process, various quality and environment concerns have to be considered

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The Plan–Do–Study–Act Cycle

The plan–do–study–act (PDSA) cycle describes the activities a company needs to perform in
order to incorporate continuous improvement in its operation. This cycle referred to as the
Shewhart cycle or the Deming wheel. The circular nature of this cycle shows that continuous
improvement is a never-ending process. Let‟s look at the specific steps in the cycle.

 Plan The first step in the PDSA cycle is to plan. Managers must evaluate the current
process and make plans based on any problems they find. They need to document all
current procedures, collect data, and identify problems. This information should then be
studied and used to develop a plan for improvement as well as specific measures to
evaluate performance.
 Do - The next step in the cycle is implementing the plan (do). During the implementation
process managers should document all changes made and collect data for evaluation.
 Study - The third step is to study the data collected in the previous phase. The data are
evaluated to see whether the plan is achieving the goals established in the plan phase.
 Act - The last phase of the cycle is to act on the basis of the results of the first three
phases. The best way to accomplish this is to communicate the results to other
members in the company and then implement the new procedure if it has been
successful.

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Conclusion
(CPM)

The planning of a site layout in practice will depend upon a number of factors such as the time
and money. The need for careful site layout and site organization planning becomes more
relevant as the size and complexity of the construction operation increases, and especially
where spare site space is very limited.

In 1957, DuPont developed a project management method designed to address the challenge
of shutting down chemical plants for maintenance and then restarting the plants once the
maintenance had been completed. Given the complexity of the process, they developed the
Critical Path Method (CPM) for managing such projects.

CPM provides the following benefits:

 Provides a graphical view of the project.

 Predicts the time required to complete the project.
 Shows which activities are critical to maintaining the schedule and which are not.

CPM models the activities and events of a project as a network. Activities are depicted as nodes
on the network and events that signify the beginning or ending of activities are depicted as arcs
or lines between the nodes. The following is an example of a CPM network diagram.

Quality assurance

Construction quality assurance is a necessary process that is followed during any construction
activity such as construction of residential or commercial buildings, roads, industrial buildings,
manufacturing plants, sports stadiums, flyovers, bridges and so on. Assurance and monitoring
of quality in any of the above construction process is very important as even a minor defect in
the quality can cause a lot of serious problems. Any lapse could also cause damage to the
property. The cost of quality is very high especially in the case of structures.

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Reference

a. http://www.processtechnicalservices.com/quality-assurance.asp
b. http://www.totalqualityassuranceservices.com/steps-to-construction-quality-
assurance/
c. www.bspconstruction.com.au/construction-quality-control.htm
d. www.qualitycc.com/
e. http://www.civilcraftstructures.com/construction-workforce/site-layout-in-
construction/

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