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Topic 1 Quiz 1- Introduction, Construction Project 13.

Preparation of Abstract of Bids Determining the


Cycle, Preparing a Bid Package, Bidding Process and lowest calculated responsive bid and ranking of the
Requirements total bid prices as calculated from lowest to highest
1. A set of documents that contain the scope of work, and Bid Evaluation Report.
specifications, drawings, and general conditions for *c. Bid evaluation
a project or job. 14. It is where contract signing and notice to proceed
*a. Bid Package takes place.
2. Once the ___________has been approved by the *c. implementation of contract
owner, final or detailed design is accomplished. 15. _________shall be available to prospective bidders
*b. Preliminary design in a given time specified by the purchaser
3. The _______________ is the second step in the correlated to their bidding schedule.
production of the plans and specifications. *a. bidding documents
*a. Final / detailed design 16. Is the forum where all officials involved in the
4. ________ are provisions regarding how a contract procurement meet and discuss all aspects of a
is to be administered and the relationships specific procurement activity, which includes the
between the parties involved are often the same technical specifications, the Approved Budget for
for all contracts. the Contract (ABC), the applicability and
*a. General Conditions appropriateness of the recommended method of
5. Those aspects of the contractual relationship that procurement and the related milestones, the
are peculiar or unique to a given project are given bidding documents, and availability of the
in the _____________________. pertinent budget release for the project.
*b. Supplementary Conditions *d. Pre-Procurement Conference
6. The document announcing to prospective bidders 17. Partnerships duly organized under the laws of the
that design documents are available for Philippines and of which at least ______________
consideration and that the owner is ready to of the interest belongs to citizens of the Philippines.
receive bids. *d. sixty percent (60%)
*d. Invitation to bid 18. Bidding documents shall be issued by the ___
7. An _________ becomes a part of the contract Secretariat or the property Officer.
documents and provides the vehicle for the owner *b. BAC
or the owner’s representative to modify the scope 19. A construction bidding process involves the
and detail of a contract before it is finalized. submission of a bid form or proposal to either the
*c. Addendum __________, construction manager or general
8. For ___________, technical specification is often contractor.
done by citing a specific brand name and model *c. Owner
number as the desired item for installation. 20. Typically, construction managers or general
*c. Materials and Equipment contractors will solicit construction bids from
9. The production of the plans and specifications subcontractors by sending out ____________:
usually proceeds in two steps, the first step is called documents that detail the construction project and
________ and offers the owner a pause in which to scope of work.
review the plan before detail design commences. *a. bid invitations
*b. Preliminary design 21. There are ___ phases in the project life cycle.
10. A cost estimate based on the _________ and other *c. 5
design information, such as square footage of roof 22. It is a procedure and techniques utilized during
area, floor space, size of heating and air construction.
conditioning units, etc., is prepared. *b. Construction Method
*a. Conceptual design 23. This approach encompasses building techniques
11. Also known as tender process. and structural systems that cannot be placed in the
*a. Bidding process category of off-site manufacture.
12. Procurement of a contract; selection of a winning *a. Non off site manufacture
bidder.
*b. Award
24. A production process that is carried out away from 9. The ________ shall open the bids in front of the
the building site. bidder or any of their duly authorized
*b. Off site manufacture representatives.
25. It is the steps and collection of phases that are *b. Bids and Awards Committee (BAC)
performed in completing a project. 10. Procurement system thru public bidding for goods
*d. Project life cycle and services required by?
26. It is the very first phase in the project management *c. Bureau of Local Government Finance
cycle where objectives and the needs of the project 11. __________ is like a blueprint?
are recognized. *c. Project Initiation Document
*d. Initiating 12. What phase of Construction Life Cycle identifies
27. In this phase, you will aim to have a realistic the scope of work?
estimate of time, cost & resources. *a. Planning
* c. Planning 13. It aims to examines all the aspect of a proposed
28. Releasing of the final deliverables or handling over project.
the project documentation to the business are *b. Feasibility Study
important in this stage. 14. What paper work is done or should be presented
*b. Closing in the monitoring phase?
29. The project plan is now put into motion and work *a. Blue Print
is performed in this phase. People carrying out the 15. This happens simultaneously with the
task. implementation phase?
*c. Executing *d. Monitoring
30. Measures progress regularly to identify variances 16. Last step in Construction Project Cycle?
from the plan so corrective actions can be taken. *b. Closing
*a.Controlling 17. A kind of list to see all areas that have been
finished?
(Topic 1) Quiz 1 *a. Punch List
1. It is the first phase of the entire project 18. A phase in Construction Project Cycle that
management life cycle. identifies what went as planned or according to
* b. Initiation plan?
2. What is the meaning of PID? *a. Closing
* a. Project Initiation Development 19. Construction Bidding is the process of submitting
3. All of these are part of the Advertising of the a proposal (tender) to undertake, or manage the
Invitation to Bid EXCEPT? undertaking of a construction project. The process
* c. Tarpaulin starts with a cost estimate from blueprints and
4. It provides a concise specification or description of material take offs
the item and the quantity. *a. True
*b. Prepare Bidding Documents 20. __________ is a formal, structured procedure for
5. Who is the Division/Person in charge of the Routes generating competing offers from different
Documents to BAC Secretariat? potential suppliers or contractors looking to obtain
*b. Records Officer an award of business activity in works, supply, or
6. What is the duration of activity (under normal service contracts.
circumstances) of the Receipt and Opening Bids? *d. Invitation to Tender or Proposal
*d. 4 hrs 21. A construction bidding process involves the
7. How much is the required fee of the records submission of a bid form or proposal to either the
incoming documents? owner, construction manager or general
*b. None contractor.
8. What is the fourth bidding process of the *b. True
procurement system?
*b. Records Incoming Documents
22. _______are documents issued by the Procuring Topic 2 – Quiz 2
Entity to provide the prospective bidders all the 1. It is an additional expense and the owner may hold
necessary information that they need to prepare the contractor liable for the work.
their bids. *b. Incomplete or Defective Work
*c. Bidding Documents 2. These are predetermined damages that the
23. Which does not describe Bidding Documents? contractors estimated in the project.
* b. The unexpected contract duration; *c. Liquidated Damages
24. Which does not belong to the Philippine Bidding 3. It is a mutually binding agreement between two
Documents (PBDs) in the following parties based on policies and conditions recorded
*c. Birth Certificate in the document form.
25. Partnerships duly organized under the laws of the *a. Construction Contract
Philippines and of which at least seventy five 4. It is the alteration of the original contract to the
percent (25%) of the interest belongs to citizens of owner by the contractor.
the Philippines. *a. Changed Conditions
*b. False 5. This occurs when one party to a contract breaches
26. Corporations duly organized under the laws of the its term in one way.
Philippines, and of which at least seventy five *c. Termination for Default
percent (75%) of the outstanding capital stock 6. This occurs when materials are late and/or
belongs to citizens of the Philippines circumstances that are out of control.
*a. True *b.Delays
27. What is ITB 7. This issue should specify who is responsible for the
*a. Instructions to Bidders work and what happens if one party doesn’t have
28. Often from companies who have been previously adequate coverage.
assessed for suitability by means of a supplier *c.Insurance
questionnaire (SQ) or pre-qualification 8. Which of the following is not the true meaning of
questionnaire Construction Contract?
*d. Proposal *d.Late Material Deliveries
29. Which does not belong to the Philippine Bidding 9. One party assigns their rights and responsibilities to
Documents (PBDs) in the following another party.
*b. NBI Clearance *a. Subcontracting
30. What does ACME stand for 10. It cost more time and money spent on the project
*c. Advance Construction Methods and Equipment and has possible disputes down the road for the
owner.
*a.Changed Conditions
11. ______ is an agreement between two or more
parties whereby one binds the other, to give or
perform a service for another out of respect for
himself.
*b.Contracts
12. Type of specification that delivers all operational
requirements needed to finish a project.
*a. Performance Specification
13. Which of the following is not a common issue in
contracts and specifications?
*a.Following the contract specification of project
14. It describes the scope of work, the materials to be
utilized, the installation procedures, and the level
of workmanship for a project that will be put under
contract.
*c.Specification
15. Which of the following does not belong to the 26. ________ is a process of analyzing and managing
prescriptive subcategories. expected costs and evaluate the impact of those
*c.Master Provisions outlays over time.
16. It stands for provisions that will reference national *c. Poor Planning, Forecasting and Budgeting
or state building codes and standards that must be 27. ________ is the process of dealing with a lot of
complied with. documentation, from contracts to material orders
*d.General Provisions to receipts to insurance certificates.
17. ______ is a specification which is used when a *d. Lacking Organization and Haphazard Document
specific product or material is required for 28. _________ is the measurement document in the
installation. construction industry that shows the movement of
*b.Proprietary Specification income into the project and expenditure out of the
18. A subcategory of prescriptive specification that project.
details the methods of installation and how to *d. Cash flow
measure quality effectiveness. 29. _________ is the sector of the economy that
*d.Execution Procedures builds, improves and repairs buildings, structures,
19. The ______ lists the type of products and materials infrastructure and land features.
required, based on the performance and structural *d. Construction
requirements. 30. _________ is the physical process of building and
*a. Required Products all other associated activities such as landscaping,
20. _____ provide detailed instructions and step-by- refurbishing, site clearance, and demolition.
step guidance on the sorts of materials to be *d. Construction
utilized and the preferred installation techniques.
*c.Prescriptive Specification Topic 2 – Quiz 2
21. _________ is an unexpected change in the project
budget that ends up increasing the total project 1. This includes the physical process of building as
cost. well as all associated activities such as landscaping,
*a. Cost Overrun refurbishing, site clearance, and demolition.
*a. Construction Phase
22. _________ is a time overrun either beyond
2. The construction phase is the industry's
completion date specified in a contract or beyond
_________.
the date that the parties agreed upon for delivery *d. backbone
of a project. 3. What must be awarded through a competitive
*b. Delays bidding process before construction can begin?
23. _________ refers to the collection of innovative *c. Contracts
tools, machinery, modifications, software, etc. 4. Most companies do not purchase or order all the
used during the construction phase of a project. materials required to complete a construction
*b. Technologies and Equipment project all at once. Which of the following reason is
24. ________ is an ineffective, unsuccessful, and true?
deficient and lack communication process of a. Limited space on site
project information. b. Reducing the number of materials that must be
stored.
*d. Poor Communication
C. Avoid spending all the money at once.
25. ________ is called when a number of appropriately
*d. All of the above
skilled, qualified, trained and experienced 5. If materials are not ordered on time or are
personnel sufficient to maintain the Project forgotten about, the crew may be unable to
Schedule is not available. * complete the current phase of construction. This
*a. Labor Shortage may lead to a _____?
*b. Delay
6. To meet the rising demand, some employers are 19. One of the parties involved gained more than the
being forced to hire __________ workers. other. What quality of specification isn’t applied?
*b. Less skilled *Be fair.
7. Because of a shortage of skilled laborers on job 20. All the necessary details and information were
sites, structures are taking _____ to complete. written in the specification directly. What quality of
*a. Longer written specification was shown?
8. This can cause delays because it affects what *Be concise.
construction work can and cannot be done on any 21. It is an effective price result in realistic pricing and
given day. a fixed-price contract.
*c. Weather *Price Competition
9. A construction equipment failure could be caused 22. It can provide a realistic pricing standard with or
by a product with a flawed design or by without competition.
______________ . *Price Analysis
*c. Poor manufacturing 23. The government provide the bases for negotiating
10. Poor and _________ communication channels can contract pricing agreements and it is the absence
slow down the transfer of information within a of effective price competition.
project and cause information blocks where *Cost Analysis
information is transferred to the incorrect person. 24. It is greater proportion of risk to performance
*d. Ineffective outcomes to ensure timely contract performance.
11. This describes the scope of work, materials to be *Urgency of the Requirement
used, installation methods, and quality of 25. A contracts extending over a relatively long period
workmanship for a parcel of work to be placed may require economic price adjustment or price
under contract. redetermination.
*b. Specification *Period of Performance
12. It is a written or spoken agreement, especially 26. The performance is under the proposed contract
concerning employment, sales, or tenancy, that involves operations under the other contracts.
intended to be enforceable by law. *Concurrent Contracts
*c. Contracts 27. The contractor agrees to perform job for a fixed
13. This requires compliance with certain formalities sum of money and responsible for preparing the
prescribed by law. Bill of Quantities.
a. Construction Phase *Lump-Sum Contract
b. Specification 28. Items of work of the contract are specified with
c. Contracts estimated quantities in the Bill of Quantities. The
d. Bid client or owner pays a fixed fixed sum for each
*e. None of the Above completed unit of work.
14. Which of the following does not belong to the *Unit-Price Contract
group? 29. The contractor will be reimbursed for all the actual
*d. Issues in terms of Qualifications cost plus agreed fee to cover his services.
15. Confidentiality covers the suppliers’ discretion if * Overhead and Profit
needed. This issue falls under compliance. 30. The contractor guarantees that he will construct
*Statement 1 is true. Statement 2 is false. the project in full accordance with the drawing and
16. Unmanaged and mismanaged procurement spend specifications. The price to the owner will not
aren’t the same. They are issues in terms of pricing. exceed some total upset price.
*Both statements are true. *Guaranteed Maximum Price
17. This quality of specification shows that the written
specification is not too broad and general.
*e. Specific
18. This issue emphasizes that written specification is
hard to understand due to variations in meaning
and interpretation?
*Ambiguous
Topic 3 – Quiz 3 16. This also applies to sub-contractors and specialty
1. These refer to the equipment used to process the contractors to gain this license before conducting
materials into finished or semi-finished products. any construction related business here in the
*c. Machine Philippines. *c. PCAB License
2. They are group of people who work together, like a
17. To ensure that works have been completed as per
neighborhood association
*b. Organization the contract and that everything works as it should.
3. Which of the following does not belong to the list *a. Commissioning
of training objectives? 18. Which of the following is the benefit of effective
*d. To perform tasks poorly gathering of business requirements?
4. The “A” in the functional chart, stands for _______. *d. All of the above
*a. Project Manager 19. __________ describe something that a product or
5. The organization structure reflects the vertical and
service is required to do.
horizontal working relationships among the
departments, _______ , and sections. *c. Divisions *a. Functional Requirements
6. It is the chart that has lists of employees’ names or 20. One of the final stages of a project is the handover
titles, the positions they hold, and the reporting after a commissioning exercise.
relationships between them and their superiors. *c. Contractor retention
*d. Position 21. An organizational framework for how a business
7. What organization structure is Organization entity operates *a.Legal Structure
Structure “C”?
22. A business entity that limits the liability of the
*a. Interrelationship among project participants
8. This department recruit, select, hire, and place owner(s) both financially and legally.
complement workers. They are also responsible for *a. Limited liability Company
security services and management. 23. Refers to a legal relationship between two or more
*a. Administrative Department people who are jointly identified in a business
9. They are responsible for procurement of contract as principals *b. Partnerships
construction materials, supplies, equipment, and
24. Are smaller entities with under 100 shareholders
etc.
which don’t allow other corporations to own stock
*b. Procurement Department
10. They perform tasks that require skills not in the entity
commonly available such as plumbing, glass works, *c. S Corporation
air conditioning, and elevator installation. 25. Meaning that the business may issue stock publicly
*c. Specialty Contractors and company profit is taxed before itis paid to
11. Allows the client to clarify what is required and the shareholders.
level of any budget limits a. *d. C Corporation
*c. Briefing
26. Is the person for whose benefit the work is carried
12. __________ are conditions or tasks that must be
completed to ensure the success or completion of out. *a. Employer
the project 27. Employed by the contractor, usually carry out the
*a. Project Requirements majority of the physical site works.
13. __________ is the starting point of the project and *d. Sub-contractors
provides guidance for the other types of 28. Also known as a constructor, builder or supplier
requirements
*b. Contractor
*b. Business Requirements
14. What does PCAB stand for? 29. Builds the project but may also carry out design.
*d. Philippine Contractors Association Board *b. Contractor
15. Every __________ has specific needs or 30. Also known as the client, the developer or the
requirements that they want to be fulfilled purchaser.
*a. Individual Stakeholders *a. Employer
Topic 3 – (Quiz 3) Construction Project Organization, 16. Measures the depth and distance of points, and
Legal Structure, Construction Project Requirements prepares the boundary lines and mapping.
1. _______ determines possible critical areas and *b. Land
forms a solution or prevention. 17. Manages labors at site and reports to the civil
*b. Senior Project Engineer engineer.
2. It is liable for the actions and finances of the *c. Foreman
business. *a. Corporation 18. Project organization is a _______. *b. Process
3. _______ is an aspect of construction-related 19. In situations in which a single person owns and
activities concerned with protecting construction operates a construction firm and makes all of the
site workers and others from death, injury, disease major decisions regarding the company’s activity,
or other health-related risks. the company is referred to as a ____________.
*d. Construction Site Safety *a. Sole Proprietorship
4. A project manager conducts regular meetings 20. In this legal structure, there are two or more
with _______. *a. Staff partners, and the liability is spread among several
5. It is the structure of the project. *d. Project principals.
Organization *d. Partnership
6. Coordinates with different subcontractors and 21. It is significant if you're planning to have a
draftsmen. construction. Ensure that the contractor abides by
*c. Structural Engineer the law, standards, and code in construction.
7. A technical drawing, also known as ________, is an *a. Legal Documents
approved detailed, precise diagram or plan that 22. Which of the following is not a legal document?
conveys information about how object functions or *d. Agreement
is constructed. *b. Engineering Drawing 23. What does PPE stand for? *a. Personal Protective
8. ________ are conditions or tasks that must be Equipment
completed to ensure the success or completion of 24. Engineers, electricians, and contractors all use
the project. *a. Project drawings as guides when constructing or repairing
9. The reason for forming a partnership is based on objects and buildings. *a. True
the principle of division of risk and _______ of 25. Any stockholder who wishes to sell a block of
management and financial resources. stock must first offer the stock for sale to the other
*a. Pooling stockholders.*a. True
10. What are the three types of legal structure? 26. A corporation is a business entity that is owned
*a. Sole Proprietorship, Partnership, and by its shareholders, who elect a board of directors
Corporation to oversee the organization's activities. *a. True
11. Coordination between subcontractors for the 27. What does BOQ stand for?
preparation of shop drawings. * a. Bill of Quantities
*c. Architectural Coordination Engineer 28. Which of the following is not a PPE? Gloves b.
12. Deals with the preparation and approval of the Helmet c. Safety shoes *d. None of the above
project schedule, updates, and revisions. 29. Structural plan, architectural plan, electrical plan,
*d. Planning Engineer and mechanical plan are all considered technical
13. Prepares cost load values for all activities. documents and plans. *a. True
*d. Quantity Surveyor 30.One of the first problems confronting an
14. Coordinates with the senior project engineer to entrepreneur who has decided to become a
ensure safety control at site. *a. Safety Officer construction contractor is that of deciding how
15. In charge with the financial follow up, controls the best to organize the firm to achieve the goals of
cost of project, and the duration execution. profitability and control of business as well as
*b. Quality Control Engineer technical functions. *a. True
TOPIC 4 – Q4 15. It is a project management tool for mapping and
scheduling activities, such as tasks or events where each
1. Generally, the Critical Path Method is utilized for node has sections that denote the earliest and latest start of
research-oriented project. Program Evaluation Review the project.
Technique is generally utilized for repetitive research- *B. Activity on Arrow
oriented project types. 16. A physically identifiable part of a project which
*D. Both statements are false E. None of the above. consumes both time and resources.
2. PERT is more appropriate than CPM for managing projects *A. Activity
that are unfamiliar and for which we can only estimate 17. Beginning or ending points of one or more activities,
activity durations. instantaneous point in time
*A. True *B. Event
3. In PERT, we assume that activity times are deterministic, 18. Combination of all project activities and the events
while in CPM we assume that activity times are probabilistic. *C. Network
*B. False 19. Used to identify precedence relationships correctly and
4. Ensures the optimal use of resources and helps to control to eliminate possible confusion about two or more activities
idle resources so that projects can be effectively executed having the same starting and ending nodes.
within the budgeted costs and scheduled time. *D. Dummy Activities
*C. Network Analysis 20. This is the estimated time it takes an activity to be
5. In the S-Curve, the Rate of work at that point in time is finished
represented by the slope of the resulting curve. *A. Duration
*A. True 21. It is the earliest starting time plus the duration of an
6. Which of the following are benefits of the network activity
analysis approach? *B. EF
*A. Allows progress to be monitored against plan. 22. Time that an activity may be started without delaying the
7. In this method of network analysis, it is assumed that completion of a project.
activity durations are deterministic, i.e.known with *C. LS
certainty. Such projects are of repetitive and non- complex 23. This is the earliest time that an activity can be started
in nature. *A. ES
*C. Critical Path Method 24. Activities along the critical path, any delay in their
8. In PERT, the path with the fewest activities is referred to completion would result in a delay of a project completion.
as the critical path. *D. Critical Activity
*B. False 25. These are the two types of scheduling computation used
9. The S-Curve shows when to expect the greatest and in Network Analysis
smallest billings throughout the project. *A. Activity-on-Node
*A. True *B. Activity-on-Arrow
10. Program Evaluation and Review Technique is utilized 26. A management tool that is suited for research and
when activity durations are already estimated. The critical development projects which are generally non- repetitious
Path Method is used to estimate the time required to in nature and are therefore sometimes called "once-
complete activities. through" projects.
*D. Both statements are false. *D. Program Evaluation Review Technique
11. It is the amount of time an activity can be delayed 27. CPM stands for
without delaying the start of its successor activity. *A. Critical Path Method
*B. Free Float 28. Widely used because it can display real-time cumulative
12. It is the amount of time a scheduled activity can be data from various project elements and compare it with the
delayed without delaying the overall project completion projected data.
date. *A. S-Curve
*A. Total Float 29. The following shows the importance of the S-Curve
13.To calculate this float is subtracting the Late Finish to the except for
Early Finish *D. Disable the plan for the same schedule scenarios
*A. Total Float 30. Critical Path is the longest path in the network of
14. A network diagram that uses various boxes or "nodes" is activities representing a project.
connected from beginning to end with arrows. depict a *A. True
logical progression of the dependencies between the
scheduled activities.
*A. Activity on Node
TOPIC 4 -QUIZ 4 17. __________ is a form of bar chart that depicts a
1. What is the meaning of network analysis AOA? project schedule and demonstrates the
*B. Activity on Activity dependencies between activities and current
2. Project planning is a part of construction project schedule status.
management ? *B. Gantt Chart
*TRUE 18. It refers to tasks that must be finished or begun
3. What is the meaning of network analysis AON? before another job may begin.
*A. Activity on Node *A. Predecessors
4. A part of construction project management which 19. It refers to tasks that come after the predecessor.
is a procedural steps that defines project goal, *B. Successors
objectives and specify project tasks / work within a 20. Is it okay to refine the tasks that undergo slack/
certain time frame. float in a construction project?
*D. Project Planning *A. True
5. What does PERT stand for? 21. What is the meaning of ES ?*A. Earliest Start Time
*D. Program Evaluation and Review Technique 22. What is the meaning of LS ? *C. Latest Start Time
6. A process that includes managing a schedule to 23. What is the meaning of LF ? *D. Latest Finish Time
have an organize tasks, deliverables, and 24. What is the meaning of EF ? *B. Earliest Finish Time
milestones on a project timeline? 25. An activity that start at the earliest time possible ?
*B. Project Scheduling *A. ES
7. In network analysis AOA, what does the arrow 26. If an activity has one or more immediate
represent ? predecessor what is the value of ES?
*C. Duration *A. Max
8. This technique is used to analyze how long it will 27. If an activity has one or more immediate
take to complete the project predecessor what is the value of LF?
*C. Program Evaluation and Review Technique *A. Max
9. This assumes that all resources are available and all 28. It is the length of time that an activity can be
predecessor activities are to be completed on time delayed without delaying the entire project ?
which results in the fastest time an activity can be *C. Float/Slack Time
completed. 29. What is latest time by which an activity has to be
*A. Optimistic Time Estimation finished (completed) so as to not delay the
10. A PERT time estimate technique that assumes all completion time of the entire project ?
resources are unavailable and there will be an error *D. Latest Finish Time
on the progress of the project. 30. It is the earliest time at which an activity can be
*B. Pessimistic Time Estimation completed
11. This project management method also refers to a *B. Earliest Finish Time
precedence diagramming method in which it uses
boxes/ nodes to denote scheduled tasks.
*B. Activity On Node
12. This technique is used as a tool for mapping a
specific activity and used for scheduling events and
tasks in project management.
*C. Activity On Arrow
13. In AOA what are the nodes represented for?
*A. Milestones
14. In AON what are the arrows represented for?
*D. To know the logical progression of the activities
15. Is it possible to use circles/ boxes in AON? *A. True
16. What is the correct formula for Program Evaluation
and Review Technique (PERT)?
*D.PERT= (O + 4*M + P)/6
Module 1: Introduction, Construction Project Cycle, B. Planning Processes
Preparing a Bid Package, Bidding Process and • Defining and redefining objectives and selecting best
Requirements alternative courses of action to attain it.
• Every details and main point of the project are carefully
Construction Method addressed and outlined to meet the requirements
• Procedure and techniques utilized during construction. needed.
• Developing schedule and budget of the project.
Why is it advanced?
Modern methods of construction
1. Off site manufacture
Production process that is carried out away from the
building site
2. Non off site manufacture
This approach encompasses building techniques and C. Executing Processes
structural systems that cannot be placed in the category of • The project plan is now put into motion and work is
off-site manufacture. performed in this phase. People carrying out the task.
• The goal is to achieve the project deliverables within
Project Construction Life Cycle planned budget and schedule.
Project Life Cycle • Continuously monitored and appropriate adjustments
- It is the steps and collection of phases that are performed are made.
in completing a project.
- Beginning to the end of a project. D. Controlling Processes
What technical work should be done? • Project objectives are met by monitoring thoroughly. It
✓ Who should be involved in each phase? coordinates with the executing phase.
• Identifying problems and risk.
• Measures progress regularly to identify variances from
plan so corrective actions can be taken.
E. Closing Processes
• Completion phase of the project.
• Formalizing acceptance of the project to an orderly end.

• Releasing of the final deliverables or handling over the


project documentation to the business.
• Within this type of analysis, understanding the
experience is transferred back to the project
organization which will help future project teams.
Links between process groups
Bidding Package
What is a bid package?
A set of documents that contain the scope of work,
specifications, drawings, and general conditions for a
project or job. Prospective contractors should be able to
review the bid package and develop their cost estimates and
schedules for the work.
A. Initiating Processes
• In the initiation phase, a project begins with an idea.
Basically, it is the very first phase in project management
cycle.
• Objective and the needs of the project is recognized.
• Feasibility of a project is investigated:
✓ Can we do the project?
✓ Should we do the project?
Bid package components 5. General conditions
• General conditions are provisions regarding how a
contract is to be administered and the relationships
between the parties involved are often the same for all
contracts.
Topics addressed in general conditions usually includes:
a. Definitions
b. Preliminary matters
c. Contract documents
d. Bonds and insurance
e. Contractor’s responsibilities
f. Owner’s responsibilities
Preparing a Bid Package
g. Engineer responsibilities
1. Project concept and need
h. Changes in the work
• The first step in any project is the establishment of a
i. Change of contract price
need and a conceptual definition and refinement of the
j. Change of contract times
facility that will meet that need.
k. Tests and inspections
• Each project has a life cycle triggered by the recognition
l. Payments to contractor and completion
of a need that can best be addressed with the
m. Suspension of work and termination
construction of a facility.
n. Dispute resolution
6. Supplementary conditions
2. Formal need evaluation
Those aspects of the contractual relationship that are
• In deciding whether to proceed with preliminary and
peculiar or unique to a given project are given in the
final design of a given project, three items should be
supplementary conditions
developed during the conceptual portion of the project
Items contained in supplementary conditions are of two
cycle. The following elements provide input to the
types:
decision process:
a. Modifications to the basic articles of the general
a. Cost/Benefit analysis
condition in the form of additions, deletions, or
b. Graphical representation of the project and a layout
substitutions
diagram of the facility
b. Additional articles of a contractual-legal nature that
c. Cost estimate based on the conceptual-level
may be desirable or necessary for a particular
information available
project
3. Conceptual drawings and estimates
7. Technical specifications
• Graphical information, including architect’s renderings
• The contract documents must convey the requirements
or sketches as well as layout drawings and 3D computer
of the project to potential bidders and establish a legally
models assist the potential bidders in better
precise picture of the technical aspects of the work to be
understanding the project.
performed. This is accomplished visually through the use
• A cost estimate based on the conceptual drawings and
of drawings.
other design information, such as square footage of roof
• A verbal description of the technical requirements is
area, floor space, size of heating and air conditioning
established in the technical specifications.
units, etc., is prepared.
• For materials and equipment, this is often done by citing
a specific brand name and model number as the desired
4. Preliminary and detail design
item for installation.
The production of the plans and specifications usually
proceeds in two steps:
8. Addenda
• The first step is called preliminary design and offers
• Any changes in detail, additions, corrections, and
the owner a pause in which to review the plan before
contract conditions that arise before bids are opened
detail design commences.
that are intended to become part of the bid package and
• Once the preliminary design has been approved by
the basis for bidding are incorporated into the bid
the owner, final or detail design is accomplished. This
package through addenda.
is the second step in the production of the plans and
• An addendum thus becomes part of the contract
specifications.
documents and provides the vehicle for the owner or the
owner’s representative to modify the scope and detail of
a contract before it is finalized.
Forms usually included in a bid package Bidding Process and Requirements
1. Bid Form 1. Prepare Bidding Documents Provides a concise
2. Form of contract agreement specification or description of the item and the quantity
3. Omnibus sworn statement 2. Invitation to Bid
4. Bid securing declaration 3. The Customer / Client Submits BID Documents and
relative requirements to the Bureau’s Records Unit
9. Invitation to bid 4. Records Incoming Documents
• The document announcing to prospective bidders that 5. Routes Documents to BAC Secretariat
design documents are available for consideration and 6. Receives the BID Documents and affix initials / signature
that the owner is ready to receive bids. in the logbook
• The invitation to bidders contains information regarding 7. Pre-bid Conference
the general type and size of the project, the availability 8. Receipt and Opening of Bids
of plans and specifications for review, and the time, 9. Bid Evaluation
place, and date of the bid opening. 10. Award

Bidding Process and Requirements


What Is the Bidding Process?
The bidding process (also known as the tender process) is a
method to select the most suitable service provider or
supplier, by comparing proposals against specific criteria.

What is the Construction Bidding Process?


A construction bidding process involves the submission of a
bid form or proposal to either the owner, construction
manager or general contractor. Typically, construction 1. Prepare Bidding Documents Provides a concise
managers or general contractors will solicit construction specification or description of the item and the quantity
bids from subcontractors by sending out bid invitations: • Bidding documents shall be available to prospective
documents that detail the construction project and scope of bidders in a given time specified by the purchaser
work. correlated to their bidding schedule.
• Biding documents shall be issued by the BAC Secretariat
Eligible Bidders or the Property Officer.
1. Duly licensed Filipino citizens/sole proprietorships;
2. Partnerships duly organized under the laws of the The bidding documents shall include the following:
Philippines and of which at least sixty percent (60%) of • Approved Budget for the Contract
the interest belongs to citizens of the Philippines; • Instructions to Bidders
3. Corporations duly organized under the laws of the • Terms of Reference
Philippines and of which at least sixty percent (60%) of • Eligible Requirements
the outstanding capital stock belongs to citizens of the • Plans and Technical Specifications
Philippines; • Delivery Time or Completion Schedule
4. Cooperatives duly organized under the laws of the • Form of Bid, Price Form, and List of Goods or Bill of
Philippines, and of which at least sixty percent (60%) Quantities
belongs to citizens of the Philippines; or • Form and Amount of Bid Security
5. Persons/entities forming themselves into a joint venture, • Form and Amount of Performance Security and Warranty
i.e., a group of two (2) or more persons/entities that • Form of Contract and General and Special Conditions of
intend to be jointly and severally responsible or liable for Contract
a particular contract: Provided, however, That Filipino
ownership or interest thereof shall be at least sixty
percent (60%). For this purpose, Filipino ownership or
interest shall be based on the contributions of each of
the members of the joint venture as specified in their
JVA.
2. Invitation to Bid Bidding Process in Construction
Pre-Procurement Conference 1. Implementation of Contract
• is the forum where all officials involved in the • Contract Signing
procurement meet and discuss all aspects of a specific • Notice to Proceed
procurement activity, which includes the technical
specifications, the Approved Budget for the Contract 2. Delivery, Inspection and Acceptance
(ABC), the applicability and appropriateness of the • Delivery of goods / services per contract For Goods
recommended method of procurement and the related • Final Inspection and Acceptance
milestones, the bidding documents, and availability of
the pertinent budget release for the project.

Advertising of the Invitation to Bid


• Newspaper
• G-EPS Posting
• Bureau’s Website

6. Receives the BID Documents and affix initials / signature


in the logbook

7. Pre-bid Conference
• A pre-bid conference shall be held on any given time as
specified by the purchaser to discuss, among other
things, technical and financial components of the bid and
eligibility requirements
• Any statement made at the pre-bid conference shall
modify the bidding documents, unless such statement is
specifically identified in writing as an amendment
thereto and issue a supplemental or bid bulletin

8. Receipt and Opening of Bids


• The BAC shall open the bids in front of the bidder or any
of their duly authorized representatives
• All members of the BAC who are present during the
opening shall initial every page of the original copies of
all eligible document received and opened

9. Bid Evaluation
• Preliminary Examination of Bids Evaluation of bidder’s
eligibility, examination of documents and bid prices and
Clarification of bids
• Preparation of Abstract of Bids Determining the lowest
calculated responsive bid and ranking of the total bid
prices as calculated from lowest to highest and Bid
Evaluation Report
10. Award
• Preparation of Resolution to Award and Notice to Award
• Approval of Resolution to Award and Notice to Award
• Issuance of Notice to Award
• Posting of Performance Security
Module 2: Issues During Construction Phase, ISSUES IN CONTRACTS
Contracts And Specifications, Construction Contracts 1. In terms of Pricing
- Unmanaged procurement spend
I. CONSTRUCTION PHASE - Mismanaged procurement spend
The construction phase includes the physical process of 2. In terms of Conditions
building as well as all associated activities such as - Lack of clarity
landscaping, refurbishing, site clearance, and demolition. - Lack of price protection
The construction phase is the industry's backbone, but 3. In terms of Compliance
contracts must be awarded through a competitive bidding - Intellectual Property
process before construction can begin. These are some of - Buyer standards
the issues/problems encountered during this phase. 4. In terms of Supplier Service Obligations
- Confidentiality
ISSUES DURING CONSTRUCTION PHASE - Rights of access
1. Delay of Materials - Material shortages are another 5. In terms of Performance
common cause of construction delays - Metrics Deliveries on time
2. Labor Shortage Weather - Because of a shortage of - Inspection failures
skilled laborers on job sites, structures are taking
longer to complete, and some projects have been HOW TO RESOLVE CONTRACT ISSUES
canceled entirely. • Instate signature notarizations
3. Weather - The weather is one of the most common • Thoroughly review the
causes of construction delays. • Contract contact a professional contract negotiation
4. Malfunction in Equipment - Construction firm
equipment, new or old, can fail for any number of
reasons. ISSUES IN SPECIFICATIONS
5. Lack in Communication - Poor communication and • Ambiguous
ineffective communication channels can slow down • Incomplete
the transfer of information within a project and • Inconsistent
cause information blocks where information is • Out of date
transferred to the incorrect person. • Too technical
• Infeasible
II. CONTRACTS AND SPECIFICATIONS
CONTRACTS - meeting of minds between two persons THE 10 PRECEPTS TO ENSURE QUALITY OF SPECIFICATIONS
whereby one binds himself, with respect to the other, to WRITING
give something or to render some service. It is an agreement • Be complementary. • Be fair.
that gives rise to obligations. • Be concise. • Be objective.
• Be consistent. • Be organized.
SPECIFICATIONS - written documents describing in detail • Be current. • Be practical.
the scope of work, materials to be used, methods of • Be correct • Be specific.
installation, and quality of workmanship for a parcel of work
to be placed under contract. CONTRACTS DEFINITIONS
a. From a Legal Point of View:
CLASSIFICATION OF CONTRACT ACCORDING TO A mutual agreement between two or more parties that
PERFECTION something shall be done, an agreement enforceable at
1. Solemn Contract - that which requires compliance law
with certain formalities prescribed by law. (e.g. b. According to FIDIC:
donation of real property which must be in a public Contract means the General Conditions, the
instrument). Supplementary Conditions, the Specifications, the
2. Consensual Contract - that which is perfected by Drawings, the Bill of Quantities, the Letter of Acceptance,
mere consent. (e.g. sale, lease, agency). the Contract Agreement.
3. Real Contract - that which is perfected by the c. According to Method of Payment:
delivery of the thing subject matter of the contract. The agreement of how the owner will pay the contractor
(e.g. pledge). for work
Module 3: Construction Project Organization, Legal Organizational Structure
Structure, Construction Project Requirements Reflects the vertical and horizontal working relationships
among the departments, divisions, and sections.
Construction Project Organization 1. ORGANIZATION STRUCTURE "A" - LARGE PROJECTS
What is a Construction Project?
A construction project, sometimes just referred to as a
‘project’, is the organized process of constructing,
renovating, refurbishing, retrofitting, or adapting a building,
or other built asset such as a tunnel or bridge.

What is an Organization?
An organization is a group of people who work together, like
a neighborhood association, a charity, a union, or a
corporation. You can use the word organization to refer to a
group or business, or to the act of forming or establishing 2. ORGANIZATION STRUCTURE "B" - SMALL PROJECTS
something.

Structure of Elements in an Organization


1.) Manpower - refers to the managerial and non-
managerial personnel employed in an organization
2.) Material - represents the physical raw materials and
intermediate products (semi-finished goods ) which are
converted and/or assembled into finished products with
the help of certain processes and technology.
3.) Machine - are the equipment used to process the
materials into finished or semi-finished products 3. ORGANIZATION STRUCTURE "C" - INTERRELATIONSHIP
4.) Methods - refer to the normal and prescribed ways of AMONG PROJECT PARTICIPANTS
doing things various operations are performed according
to certain systems and procedures.
5.) Money - is the most critical and all-purpose resource
because it is used to acquire or hire other resources.

Project Organization and Staffing


is where organization structure, individual positions and
functions are developed, duties and responsibilities are
defined, teams are formed and training programs are
formulated.

Areas of Responsibility Position Chart


• Project Leadership - responsible for the management of a position chart lists employee names or titles, the positions
the project they hold and the reporting relationships between them and
• Project Team - implements the project their superiors.
• Project Board - is the decision-making authority that 1. POSITION CHART "A" - LARGE PROJECTS
defines project success and whether or not a project
must be canceled.
2. POSITION CHART "B" - SMALL PROJECTS "C"
• Design and adopt appropriate accounting procedures
and standards
• Records all financial transactions
• Summarize the “Book” on a monthly, quarterly and
annual basis Responsibilities for payroll services
• Undertake Billing and Collection
• Issue Receipts of Payments
• Responsible for timely payments of SSS, Pag-ibig and
Philhealth dues

Functional Chart "D"


Organizes workers in a business based on skills, expertise, • Responsible for procurement of construction materials,
and specialty supplies, equipment, etc.
• Handle property and supply management including
inventory of materials, equipment, vehicles, tools and
other properties of the company

"E"
• Responsible for Technical Operations including field
investigation, surveys and project management services
depending on the specialization like: civil works,
architecture, sanitary, plumbing, electrical works and
mechanical works.
• Undertake the actual physical execution of works called
for in the project.

"F"
FUNCTIONAL CHART • Depending on the assigned tasks, responsibilities in
"A" implementing and commissioning certain jobs called for
• Manage day-to-day activities in project
• Provide overall direction
• Responsible for the technical performance & successful "G"
completion of the project • Normally, specialty contractors (e.g., plumbing, glass
• Engineer project expenses are within budget woks, air conditioning, elevator installation) perform
• Conduct periodic coordination meetings tasks that require skills not commonly available. Thus,
• Administer periodic evaluation of project activities and specialty contractors handle the installation, testing and
the productivity of the project participants commissioning of air conditioning units, elevators, glass
works (cladding), and the like.
• Carry out responsibilities for the preparing the procedure
for the turnover of the project when completed
Training
is the process of increasing the knowledge and skills of an
"B"
employee for doing a particular job.
• Recruit, select, hire, place complement workers Handle
timekeeping
The objectives of the training are varied depending on the
• Monitor attendance, tardiness and absences Update
requirements of the project. Enumerated below are the
personnel records
typical objectives of training:
• responsible for security services and management
1. To orient new recruits or workers;
Secure necessary licenses and permits
2. To ensure that the project engineers and workers know
• Provide messenger services exactly their tasks;
3. To improve skills, productivity, job performance and
aptitude based on acceptable standards.
CONSTRUCTION CONTRACT 2. UNIT PRICE CONTRACT
A construction contract is a mutual or legally binding Items of work of the contract are specified with estimated
agreement between two parties based on policies and quantities in the Bill of Quantities The client or owner pays
conditions recorded in document form. The two parties a fixed sum for each completed unit of work
involved are one or more owners, and one or more
contractors. For both the owner and the builder, that the ADVANTAGES
executed job will receive the specific amount of • Fair basis for competition
compensation or how the compensation will be • Lower risk for contractor
distributed. • Changes in contract documents can be made easily
DISADVANTAGES
WHY DO WE USE CONTRACT IN CONSTRUCTION? • Final cost not known form the beginning
• Describe scope of work • Unit price sometime tend to draw unbalanced bid
• Establish time frame
• Establish cost and payment provision 3. SCHEDULE OF RATES CONTRACT
• Set fourth duties, obligations and relationship Schedule of the work items without quantities is prepared
• Minimize disputes by the owner and to be rated by the contractor. Used for
• Improve economic return of investment repair and maintenance works or under conditions of
• Provide protection for parties which abide by urgency.
their obligations
ADVANTAGES
FACTORS INFLUENCING THE CHOICE OF CONTRACT • Work can be commenced earlier than if a full BOQ
TYPE has been prepared
• Price Competition DISADVANTAGES
• Price Analysis • No indication of the final price of the works
• Cost Analysis • Very difficult to determine which contractor the
• Urgency of the Requirement most advantageous offer
• Period of Performance • May cause financial problems to the owners
• Concurrent Contracts
• Allocation of Risks B. Cost Reimbursement Contracts (Cost-based Contracts)
OVERHEAD AND PROFIT
TYPES OF CONSTRUCTION CONTRACTS The contractor will be reimbursed for all the actual cost plus
TWO BROAD CATEGORIES: an agreed fee to cover his services
A. Price Given in Advance Contracts (Price-based 1. COST PLUS PERCENTAGE OF COST
Contracts) The contractor is reimbursed for all his costs with a fixed
1. LUMP-SUM CONTRACT percentage of cost to cover his services
Contractor agrees to perform job of work for a fixed sum of 2. COST PLUS FIXED CONTRACTS
money. The contractor is responsible for preparing the Bill The owner pays all costs of construction with a fixed sum of
of Quantities money . The fee is fixed and does not fluctuate with the
actual cost of the project.
ADVANTAGES 3. TARGET COST WITH VARIABLE FEES
• Low risk on the owner, Higher risk to the contractor The contractor and owner agree to a target estimate of
• Contractor will assign best personnel construction. Bonus or penalty arrangements are tied to this
• Contractor selection is easy target figure.
DISADVANTAGES 4. GUARANTEED MAXIMUM PRICE
• Contractor is free to use the lowest cost of material The contractor guarantees that he will construct the project
equipment and methods in full accordance with the drawings and specifications The
price to the owner will not exceed some total upset price.
• Contractor carries much of the risks. The tendered
price may include high risk contingency.
• Competent contractors may decide not to bid to
avoid a high-risk contract
Construction Project: Legal Structure “:A quick guide to construction projects: The legal structure
What is Legal Structure? (The key legal aspects of a construction project, including
A legal structure is an organizational framework for how a things to look out for that can go wrong.)" -PLC Construction
business entity operates. Also called a business structure, a
business form, or a business ownership structure, the What is the legal structure of a construction and
proper legal structure depends on the size and type of your engineering project?
business and your business goals. Key Legal Pillars
1. The parties
Why is it important? • The employer (also known as the client, the developer or
Every new business is required to form a business entity by the purchaser) is the person for whose benefit the work
choosing a legal structure under which the company will is carried out.
operate. • The contractor (also known as a constructor, builder or
COMMON LEGAL STRUCTURES supplier) builds the project but may also carry out design.
1. Limited Liability Company (LLC) • Professional consultants such as architects, engineers,
An LLC is a business entity that limits the liability of the project managers or quantity surveyors design and
owner(s) both financially and legally. It is a simpler type of manage the project. Sub-contractors, employed by the
operation to set up compared to some of the other possible contractor, usually carry out the majority of the physical
business categories like corporations and also provides a site works
legal distinction between the company assets and personal 2. Procurement
assets of the founders. “Procurement” in a construction project refers to the
2. Partnerships process of the purchase of goods and services from
A partnership refers to a legal relationship between two or conception to completion. It is a vital part of the overall
more people who are jointly identified in a business contract construction process. Historically, the responsibility for the
as principals. Partnership Agreements, also called 50/50 design of a project was split from the responsibility for its
Partnership Agreements, specify each party's construction. Today, “design and build” contracts where the
responsibilities within the company. Additionally, contractor both designs and constructs the project are also
partnership contracts may serve as a roadmap detailing the common.
contributions, obligations, and other partner duties. 3. Contracts
3. S Corporations • Professional institutions and trade bodies produce
A corporation is a type of business that exists separately standard form construction contracts.
from its owners or founders. It is its own entity, is usually • Employers often ask for changes to standard form
owned by shareholders, and managed by a board of building contracts, particularly as some standard form
directors. contracts favour one of the parties to that contract.
S corporations are smaller entities with under 100 Many employers use bespoke professional appointment
shareholders which don’t allow other corporations to own contracts to appoint professional consultants.
stock in the entity. Under this categorization, the business • A typical construction project also uses bonds, deeds of
can elect to have tax assessed by individual shareholder assignment and deeds of novation.
income only. This avoids the business being taxed once as 4. Insurance
an entity and again when shareholders declare their Precise and detailed insurance arrangements are a vital
personal income. component of a construction project. Employers must
4. C Corporations understand any insurance requirements imposed on them.
Most corporations are C corporations, meaning that the Usually, an employer will jointly insure the construction of a
business may issue stock publicly and company profit is building in its own name and in those of its contractors and
taxed before it is paid to shareholders, who then must pay sub-contractors.
tax based on their individual income. Other corporations 5. Legislation and regulation
may also be shareholders of a C corporation. • Health and safety legislation applies to construction
projects. The most important regulations are the
How to choose the right legal structure for your Construction (Design and Management) Regulations
construction company? 2007. These impose detailed obligations on the
CRITERIA TO CONSIDER AND EVALUATE employer.
1. owner liability • Part II of the Housing Grants, Construction and
2. expenses and procedures needed to create and run the Regeneration Act 1996 regulates payment under
business structure construction contracts. You may negotiate the details of
3. how the business will be taxed your payment arrangements but you cannot “opt out” of
4. investment needs these compulsory payment rules.
• Projects must comply with the Building Regulations. 3 Main Category of Project Requirements
• The most important construction industry-specific tax 1. Business Requirements
rules are the Construction Industry Scheme (CIS). Are the high-level needs of the business, it addresses what's
• Public bodies (and those exercising public functions, such required and why the project is happening.
as utilities) must follow EU public procurement rules. 2. Solution Requirements
Are the specific features and characteristics of the product
As a non-specialist, how do I run a construction project? or service that meet all requirements, both business and
1. Get good advice early. stakeholder. It includes both functional and non- functional
2. Give the project time requirements.
3. Accept some compromise. 3. Stakeholders
Anyone who has an interest in the product or service that's
CONSTRUCTION PROJECT REQUIREMENTS being produced or provided. They may be internal
Project Requirements - Are conditions or tasks that must be stakeholders (employees) or external stakeholders
completed to ensure the success or completion of the (customers, regulators, or suppliers). Every individual
project. stakeholder has specific needs or requirements that they
• Provide a clear picture of the work that needs to be done want to be fulfilled.
• Align the project's resources with the objectives of the
organization 6 essential permits that is needed in the Construction
• Costs and quality are considered. Project
1. PCAB LICENSE
The benefits of effectively gathering project requirements 2. SANITARY PERMIT
Cost Reduction 3. BUILDING PERMIT
• Higher Project Success rate 4. MECHANICAL PERMIT
• More effective change management 5. ELECTRICAL PERMIT
• Improved communication among stakeholders 6. OCCUPANCY PERMIT

Many construction projects are divided into stages and are


often named in different ways. Some common ones for the
construction industry and briefing description might be:
1. BRIEFING
• Allows the client to clarify what is required and the level
of any budget limits.
• A project brief is agreed with the client and user and
initial staffing, recruitment and training.
2. DESIGNING
• Approval is required from the authorities involved and
the client by completing the project brief, determining
the construction layout, methods of construction and
estimated costs.
3. TENDERING
• The aim of the tendering phase is to appoint a contractor
to carry out the site construction work.
4. CONSTUCTION
• To construct the building to cost, time and quality
specifications
5. COMMISIONING
• To ensure that works have been completed as per the
contract and that everything works as it should.
6. CONSTRACTOR RETESSION
• One of the final stages of a project is the handover after
a commissioning exercise.
Module 4: Planning and Scheduling: Network Analysis
AOA and Scheduling Computation, Network Analysis
AON and Scheduling Computation
What is Network Analysis?
Network analysis in project management analyzes the Importance of S-Curve
different networks of activities. It is carried out to know the • Track project progress
critical path and duration of the project. Determination of • Enable to predict when resources will be heavily utilized
the critical path and critical activities is important because,
• Helps to manage stakeholder expectation
with the help of critical activities, project controlling and
• Enable to plan for different schedule scenarios
rescheduling of the delayed activities can be possible.
Basic Elements of a Network Diagram
There are many methods available for network analysis in
• Activity - An activity is a physically identifiable part of a
project management. The critical Path Method and
project which consumes both time and resources.
Programme Evaluation and Review Technique (PERT and
CPM) are the most used methods for network analysis in • Event - beginning or ending points of one or more
project management. activities, instantaneous point in time
• Network - Combination of all project activities and the
events
PERT or Program Evaluation Review Technique is a
management tool that is suited for research and • Dummy Activities - Dummy activities are used to identify
development projects which are generally non-repetitious precedence relationships correctly and to eliminate
in nature and are therefore sometimes called “once possible confusion about two or more activities having
through” projects the same starting and ending nodes.
• Duration - This is the estimated time it takes an activity
Importance of Network Analysis to be finished
• Network analysis helps management to minimize the • Earliest Start (ES) This is the earliest time that an activity
total cost and total maintenance time. With network can be started
analysis, the production cost can be minimized by • Earliest Finish (EF) This is the earliest time that an activity
reducing the maintenance time. can be finished. It is the earliest starting time plus the
• Network analysis ensures the effective utilization of duration of an activity
limited resources. It also ensures the optimal use of • Latest Start (LS) This is the latest time that an activity may
resources and helps to control the idle resources so that be started without delaying the completion of a project.
projects can be effectively executed within the budgeted • Latest Finish (LF) This is the latest time that an activity
costs and scheduled time. can be finished without delaying the completion of the
• Time management plays a crucial role in every project. project.
Sometimes available resources must be arranged with a • Critical Path It is the longest path in the network of
view to reducing the total time for the project rather activities representing a project. The critical path is the
than reducing the cost of the project. Network analysis series of interconnected activities through the network
helps managers to manage activities without any delay. for which each activity has zero float time, the critical
path determines the minimum time required to
S-CURVE complete a project
In general use, the S Curve is used to measure the progress • Critical Activity These are the activities along the critical
of project work, evaluate performance, and serve as a path, any delay in their completion would result in a
consideration for making cash flow estimates. S Curve is delay of a project completion.
widely used because it can display real-time cumulative data • Activity-On-Arrow - The network analysis activity-on-
from various project elements and compare it with the arrow displays the optimal plan for the entire project,
projected data any scheduling conflicts, and the needed order of actions
in a project or process.
Understanding the S-Curve • Activity-On-Node - “Activity-on-node" refers to a
precedence diagramming technique that uses nodes to
represent scheduling activities. This technique uses a
logical progression of the interdependence between the
scheduled tasks is shown by connecting these numerous
boxes, or "nodes," from beginning to conclusion with
arrows.

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