CONSTRUCTION METHODS AND PROJECT MANAGEMENT

PROJECT?
A project is a temporary endeavor undertaken to create a unique product, service, or
result.
▪ Unique product, service, or result. Projects are undertaken to fulfill objectives by
producing deliverables. An objective is defined as an outcome toward which work is to
be directed, a strategic position to be attained, a purpose to be achieved, a result to
be obtained, a product to be produced, or a service to be performed.
▪ Temporary endeavor. The temporary nature of projects indicates that a project has a
definite beginning and end. Temporary does not necessarily mean a project has a short
duration.
▪ Projects drive change. Projects drive change in organizations. From a business
perspective, a project is aimed at moving an organization from one state to another
state in order to achieve a specific objective.
▪ Projects enable business value creation. PMI defines business value as the net
quantifiable benefit derived from a business endeavor.

PROJECT, PROGRAM, AND PORTFOLIO

PROJECT - A project is a temporary endeavor undertaken to create a unique product,
service, or result.
PROGRAM - A program is a group of related projects, subsidiary programs, and program
activities that are managed in a coordinated manner to obtain benefits not available
from managing them individually.
PORTFOLIO - A portfolio is a collection of projects, programs, subsidiary portfolios,
and operations managed as a group to achieve strategic objectives.

CONTRACT?
A con tra c t is a legally binding ag reement be tween two or more parties to exchange
some thing o f value . In construction ,it is usually money in exchange for
construction services to build a facility. A contract imposes both contractual and
legal obligations on both parties that are difficult or impossible to change .
For a contract to be VALID it needs to have the following:
▪ Competent parties.
To enter into a contract, a party must be in legal age and have sufficient mental
awareness prescribed by law. This of course is rare a problem in construction.
▪ Offer and acceptance.
When parties agree, it is understood that there is a mutual assent or meeting of the
minds. The agreement must be unequivocal and not propose new terms. Even small,
seemingly insignificant issues are sufficient to preclude a determination of mutual
assent.
▪ Reasonable certainty of terms.
Terms should be clear in order that an independent third party can determine if the
parties performed as promised. If performance cannot be determined, there may not be a
valid contract. This is rarely a problem in construction but is potentially a greater
problem in design contracts private-sector.
▪ Proper subject matter.
Parties to participate in the contract must not do something that is illegal.
▪ Considerations.
Contracts are economic exchanges; therefore, something of value must be exchanged.
Valid contracts require considerations or an exchange of something of value; this rule
is sometimes called the preexisting duty rule.

CONTRACT DOCUMENTS
One part addresses the legal aspects between the owner and the contractor The second
part addresses the technical requirement of the project.
▪ CONDITIONS OF CONTRUCT.
1. THERE MUST BE AN OFFER - There must be an offer and an acceptance. If I don’t
offer you something, there is no contract. If you don’t accept it, there is no
contract.
2. THERE MUST BE CONSIDERATION - This means that something has to be exchanged. Your
project suppliers offer you goods or services and you pay them money in exchange.
3. THERE MUST BE LEGAL CAPACITY - This is expected to vary from country to country,
but the people entering into the contract must be legally able to enter into an
agreement.
4. THERE MUST BE LEGAL PURPOSE - This simply means that the subject of the contract
needs to comply with the law.
5. THERE MUST BE INTENTION - There must be the understanding on both sides that this
agreement could be enforced by a court if it came to it. You must go into the contract
understanding that it is legally binding and that you intend for it to be so. You
aren’t signing up to something on a best endeavours basis, or without realising that
it’s a legal document.

▪ DRAWINGS
It means the set of drawings that form a part of the legal contract for services
between two or more parties and which have been signed by or on behalf of the Parties
to this Contract.
Drawings should indicate the relationship between elements of the facility and may
designate the following for each material, assembly, component, and accessory:
• Location of each material, assembly, component, and accessory
• Identification of components and pieces of equipment.
• Give dimensions of components and sizes of field assembly components.
• Indicate interfaces and connections between materials, detail assemblies and diagram
systems.
• Show forms and relationship of building elements.
• Indicate limits of work and as applicable indicate areas of construction phases
• Indicate extent of alternates and indicate “base bid” and “alternate bid”
construction so that the scope of each condition is clear.
• Indicate work to be performed by or for the owner under separate contracts.
• Identify applicable drawing symbols in schedule of symbols.
• Indicate the graphic scale of drawings.

▪ SPECIFICATIONS
1. EXCAVATION, FILLING AND GRADING
2. TERMITE CONTROL
3. PLAIN AND REINFORCED CONCRETE
4. CONCRETE MASONRY
5. MASONRY FINISH
6. STRUCTURAL STEEL
7. CARPENTRY AND JOINERY WORKS
8. HARDWARE
9. ROOFING MATERIALS
10. STEEL DOORS AND WINDOWS
11. ALUMINMUM GLASS AND WINDOWS
12. GLASS AND GLAZING
13. PLUMBING
14. ELECTRICAL
15. PAINTING AND VARNISHING
16. ACOUSTIC CEILING
17. WATER PROOFING
18. MECHANICAL
19. FACILITIES FOR DISABLED PERSONS

▪ ADDENDUM
It is a change in the contract documents during the bidding process, before a ward of
the contract. Addenda are issued to correct errors in the contract documents or clarify
an issue. May concern addition to the work at the request of the owner. The estimating
team must be certain that the costs of all addenda are included in the estimate.

▪ ALTERNATE
It is an addition or subtraction to a base bid price for substitutions requested by the
owner during the bidding process.
Each alternate is listed and numbered separately in the bid documents.
For example:
An alternate No.1 may be add the parking lot.
An alternate No.2 may be deduct the sidewalks.

▪ CHANGE ORDER
It is issued by the designer but signed by the owner and contractor making a change in
the contract documents during construction. Upon approval by the owner change orders
become a part of the contract documents.

Different Types of Contracts:

1. LUMPSUMP - This is the most common type o f contract. The construction manager and
the owner agree on the overall cost o f the construction pro ject and the owner is
responsible for paying that amount whether the construction pro ject exceeds or falls
below the agreed price o f payment.
2. COST PLUS FEE - This contract provides payment for the contractor including the
total cost o f the pro ject as well as a fixed fee or percentage o f the total cost.
This contract is bene ficial to the contractor since any additional costs will be for
paid even though they were unexpected for the owner.
3. GUARANTEED MAXIMUM PRICE - This contract is the same as the cost – plus – free
contract although there is a set price that the overall cost and fee do not go above .
4. UNIT PRICE - This contract is used when the cost cannot be determined ahead o f
time . The owner provides materials with a specific unit price to limit spending.
Considerations:
Without specific terms and conditions, duly notarized contract that is agreed by both
parties there should be no construction that must happen.

BID
A bid is given to the owner by construction manager that are willing to comple te their
construction project . A bid tells the owner how much money they should expect to pay
the construction managemen t company in order for the comple te the project .

BID DOCUMENT VS CONTRACT DOCUMENTS

The bid document applies to before the contract is signed, whereas the contract
document applies to after the contract agreement is signed by the owner and contractor.
Open Bid: An open bid is used for public projects. Any and all contractors are allowed
to submit their bid due to public advertising.
Closed Bid: A closed bid is used for private projects. A selection of contractors are
sent an invitation for bid so only the can submit a bid for the specified project.
Competitive Contract: Advertisement for bids in public media. Bid opening is performed
in the open public. Contractor performs a detailed estimate and submits a bid price
accordance with the contract documents. Most governments award contract to the lowest
bidder, provided all conditions of the contract have been met.
Negotiated: Award of the contract is made to the contractor the owner feels can provide
the best total performance , which may or may not be lowest initial cost.

-Advertisement for bids

-Notice to bidders
-Invitation to bid
-Instructions to bidders
-Proposal form

BID SOLICITATION
The bidding solicitation sometimes called the invitation to bid contain the time that
bids must be submitted. The estimator must establish a plan to complete all work to
meet the deadline of the bid date, otherwise the bid will be disqualified. The bid
solicitation also gives the name and address of the owner and design organization with
instructions on how to obtain the bid documents.
INSTRUCTION TO BIDDERS
The instruction to bidders section describes vital information that is required to
submit a bid. For example, that may appear in the instruction to is a statement that
the contractor must make a provision during execution of the contract document to allow
the owner to take advantage of the owner's contract documents to allow the owner to
take advantage of the owner's tax exempt status for materials and equipment purchased
for the project.
AVAILABLE INFORMATION TO BIDDERS
The information available to bidders section may include such items as referencing a
subsurface exploration report that has been prepared for the project, but is not shown
in contract documents . the information available to bidders may include information
about the project from a material testing laboratory
BID FORMS
The bid form defines the format that is required for submission of the bid.
The format of the bid form impacts the assembly and summary of costs in the final
estimate. The owner may request the bid as lump sum, unit prices based on predefined
pay quantities in the bid documents , or combination of both.

BID SELECTION
1. LOW-BID SELECTION
This selection focuses on the price of a project . Multiple construction management
companies submit a bid to the owner that is the lowest amount they are willing to do
the job for. Then the owner usually chooses the company with the lowest bid to complete
the job for them .
2. BEST VALUE SELECTION
This selection focuses on both the price and qualifications of the contractors
submitting bids. This means that the owner choose the contractor with the best price
and the best qualifications. The owner decides by using request for proposal (RFP)
, which provides the owner with the contractors exact form of scheduling and budgeting
that the contractor expects to use for the project.
3. QUALIFICATIONSBASED SELECTION
This selection used when the owner decides to choose the contractor only on the basis
of their qualifications. The owner then uses a request for qualifications (RFQ) ,
which provides the owner with the contractors experience, management plans, project
organization, and budget and schedule performance. The owner may also ask for safety
records and individual credentials of the members.

INSURANCE/BOND
1. BID BOND
It is to ensure the owner that the contractor will sign the contract for the bid
amount , if the bidder refuses or fails to sign the contract , the owner may retain the
bond or check as liquidated damages . Its amount equal to 520 of the amount of the bid.
2. PERFORMANCE BOND
It is to ensure the owner that the contractor will perform all work in accordance with
the contract documents Performance bond last for the period of construction of a
project . Its amount 2550100 of the contract ,
3. PAYMENT BOND
This bond is issued to ensure the owner that all wages and bills for material will be
paid upon completion of the project.

WARRANTIES
They are guarantees by the contractor that speci fic components o f the pro ject will
be free from de fects due to materials or workmanship for a speci fied warranty period.
They cover speci fic items, such as a roo fing warranty or an equipment warranty that
are par t o f the construction pro ject.
The type o f warranty and warranty periods are de fined in the written speci fications
o f the contract documents.
PROJECT ORGANIZATION?
The project organization is the structure of the project. It's created separately, with
specialists and workers from various departments. These personnel work under the
project manager. Project organization is a process. It provides the arrangement for
decisions on how to realize a project.

PROJECT STRUCTURE
• Owner’s option , sub ject to procurement and other regulations
• Should provide incentives to meet owner’s objectives
• Determines owner’s level o f control and oversight
• Experience, involvement level of owner
• Objectives cost, quality
• Relationship between owner and engineer/architect
• Pre ferences of engineer/architect
• Managing the interests of involved parties

PROJECT MANAGEMENT
Project management is “the application of knowledge, skills, tools and techniques to
project activities to meet project requirements.”
THE TRIPLE CONSTRAINT
• Every project is constrained in different ways by its:
– Scope goals: What work will be done?
– Time goals: How long should it take to complete?
– Cost goals: What should it cost?
Project Management involves:
❑ Managing competing demands on Scope, Time, Cost and Quality attributes.
❑ Managing Stakeholders with differing needs and expectations.
❑ Managing identified requirements.
PROJECT MANAGEMENT – KNOWLEDGE AREAS
• Integration Management
• Scope Management
• Time Management
• Cost Management
• Quality Management
• Human Resource Management
• Communications Management
• Risk Management
• Procurement Management

PROJECT STAKEHOLDERS
Stakeholders are the people involved in or affected by project activities.
• Stakeholders include:
– Project sponsor
– Project manager
– Project team
– Support staff
– Customers
– Users
– Suppliers
– Opponents to the project
Knowledge areas describe the key competencies that project managers must develop.
– Four core knowledge areas lead to specific project objectives (scope, time, cost,
and quality).
– Four facilitating knowledge areas are the means through which the project objectives
are achieved (human resources, communication, risk, and procurement management).
– One knowledge area (project integration management) affects and is affected by all
of the other knowledge areas.
– All knowledge areas are important!
Many organizations support an emerging business strategy of project portfolio
management:
– Organizations group and manage projects as a portfolio of investments that
contribute to the entire enterprise’s success.

ROLE OF PROJECT MANAGERS

• Job descriptions vary, but most include responsibilities such as planning, scheduling,
coordinating, and working with people to achieve project goals.
• Remember that 97 percent of successful projects were led by experienced project
managers.
SUGGESTED SKILLS OF PM
Project managers need both “hard” and “soft” skills.
– Hard skills include product knowledge and knowing how to use various project
management tools and techniques.
– Soft skills include being able to work with various types of people.

PROJECT MANAGEMENT OFFICE

A PMO is an organizational group responsible for coordinating the project management
function throughout an organization.
Possible goals include:
– Collect, organize, and integrate project data for the entire organization.
– Develop and maintain templates for project documents.
– Develop or coordinate training in various project management topics.
– Develop and provide a formal career path for project managers.
– Provide project management consulting services.
– Provide a structure to house project managers while they are acting in those roles
or are between projects.

PROJECT MANAGEMENT TOOLS AND EQUIPMENT

Project management tools and techniques assist project managers and their teams in
various aspects of project management
• Some specific ones include
– Project Charter and WBS (scope)
– Gantt charts, PERT charts, critical path analysis, critical chain scheduling (time)
– Cost estimates and earned value management chart (cost)

1. PROJECT CHARTER - The project charter identifies the key stakeholder list . It may
also contain information about the roles and responsibilities of the stakeholders .
2. WORK BREAKDOWN STRUCTURE - is the process o f subdividing pro ject deliverables and
pro ject work into smaller, more manageable componen ts . The key bene fit o f this
process is that it provides a framework o f what has to be delivered .
3. GANTT CHART - A bar char t o f schedule in forma tion where activi ties are listed
on the ver tical axis, dates are shown on the horizontal axis, and activi ty durations
are shown as horizon tal bars placed according to star t and finish dates .
4. CRITICAL PATH METHOD - A method used to estima te the minimum pro ject duration and
determine the amount o f schedule flexibili ty on the logical network paths within the
schedule model .
5. COST ESTIMATES - are generally expressed in units of some currency (i .e ., dollars ,
eu ros , yen , e t c .) , although in some instances other units of measure , such as
staff hours or staff days , are used to facilitate comparisons by eliminating the
effects of currency fluctuations .
6. EARNED VALUE ANALYSIS - Earned value analysis compares the per formance measuremen t
baseline to the actual schedule and cost per formance .

PROJECT LIFE CYCLE is a collection of project phases that defines:

– What work will be performed in each phase.
– What deliverables will be produced and when.
– Who is involved in each phase.
– How management will control and approve work produced in each phase.
PROCESS
A process is a series of actions directed toward a particular result.
• Project management can be viewed as a number of interlinked processes.
• The project management process groups include:
– Initiating processes
– Planning processes
– Executing processes
– Monitoring and controlling processes
– Closing processes