CONSTRUCTION METHODS AND

PROJECT MANAGEMENT

CHAPTER 3
Construction Project

C onstr uction Pr oject Or gani zati on

This module provides a discussion on the

common terminologies and provisions of
Construction Project
7.1 PROJECT ORGANIZATION
Project Organization Typical Organizational Structure
The Project Organization is the
structure of the project. It's created
separately, with specialists and
workers from various departments. It
provides the arrangement for
decisions on how to realize a project.

Project Organization and Contracting

Major Components of Contract:
• Project Delivery Method
(Organizational Project Delivery)
• Payment Scheme
• Award Mechanism Award
Features of an Organizational Structure
7.2 PROJECT ORGANIZATION AND CONTRACTING
Delivery Methods

DESIGN AND BUILD

Common Terminologies
Owner or Client
Entity, individual or organization commissioning and
funding the project, directly or indirectly.
Architect
Designs the space to meet client needs, as well as
the aesthetic appearance of the exterior and interior
of the building.
Engineer
Plan, design, develop and manage projects for
the construction or repair of buildings and a wide
variety of other construction projects.
Construction Drawings
Construction drawings are the written and graphic
record of decisions taken during the design phase.
These are the “lifeline of the construction project”.
These includes all specifications and drawings
necessary for the construction.
General Contractor
A general contractor is the main contractor on a
construction project. His responsibility is to ensure
that the project is completed according to the
client’s specifications, as well as in compliance with
the law. Construction contractors often hire
subcontractors in order to get the work done
effectively and on time.
Sub Contractor
Subcontractors, on the other hand, are companies
or people hired by the contractor to do specific tasks
or services in their area of expertise. Subcontractors
report to the contractor, who is ultimately
responsible to the client for their work. Therefore,
the subcontractor is liable to the contractor, but not
directly to the client. i.e. A general contractor may
hire an electrician, plumber, and carpenter for a
construction project.
Common Terminologies
Shop Drawings
Shop drawings are a set of drawings that provide
the details of various components that help in the
construction of a project. They are generally
prepared by your contractors and material suppliers.
Shop drawings supplement working drawings and
typically required for prefabricated components.
Consider them an add-on or a detailed development
of construction working drawings. They typically
include fabrication and installation details, structural
steel detailing, windows and door installations and
other MEPF components.
As-Built Drawings
As built documentation is similar to the final draft of
your building and includes every change that your
project has undergone during planning and
execution.
As built construction documents reflect the actual
structure or the building – not as it was conceived
as idea, but as it actually stands. Buildings don’t
always stick to plans and the final structure may be
slightly or significantly different to the original idea.
Traditional Delivery Method

A/E – Architecture and Engineering

Pure Construction Management
C/M or M/C – Managing Contractor
Trade Contractor is a person other than the Construction
Manager or its Subcontractors that has a direct contract
with the Authority to perform a portion of the Project.
Advantages of PCM
• Great Flexibility in the Schedule and for
Changes
• Market Competition for subcontracts
• Fiduciary Relationship with the Contractor
• Owner can get rid of a particular subcontractor
• Small Financial Risks of PCM
• Lessens owner’s responsibilities
Disadvantages of PCM
• Lower incentive for CM to reduce price, time
• Owner alone takes risk on cost of project
• Participants must all be cooperative and well
communicating
• All parties must be committed from the
beginning
• High Risk of Loss of Reputation
Construction Management at Risk
Advantages of CM at Risk
• Reduced Owner’s Risk
• CM at risk usually goes with Guaranteed
Maximum Price (GMP)
• Contractual Relationships between CM and
Trade Contractors

Disadvantages of CM at Risk
• The GMP is a defined price for an undefined
product
• Bad during design: Design pressure
• Risk of adversarial relationship
A significant difference between trade contractor and
subcontractor is that subcontractors are contracted directly by
the construction manager, whereas trade contractors are
contracted by the client themselves.
Design and Build
D/B stands for Design–build. It is a method in which
the design and construction services are contracted by
a single entity.
Advantages of Design and Build
• One Contractual Team Responsible for Design and
Construction Function Construction Function
• Allows Fast Tracking since there is a Close
coordination within the team
• Single source of accountability Single source of
accountability
• Designer/contractor conflicts not exposed to owner
• Easier incorporation of changes caused by Easier
incorporation of changes caused by field conditions
Disadvantages of Design and Build
• Lack of fiduciary relationship with designer with
designer because there is a risk of sacrificing design
quality to protect profit
• Can be bad for complicated projects because it is
very important for an owner to be closely involved to
specify important aspects of design up -front
• Can lead to delay of construction steps for design
completion