TOPIC 1 Unforeseen Site Conditions-Discovering unexpected TOPIC 3

conditions at the construction site.

Bidding - a competitive process in which individuals or Cost Overruns- Among the top construction industry Organization – is a group of individuals who are
companies submit problems is cost overrun. cooperating willingly and effectively for a common
Poor Management- Poor project management leads to goal.
Bidding and Tendering Process miscommunication. Construction Project Organization – involves planning,
Poor Communication- One of the more everyday coordinating, and managing various aspects of a
Bid Solicitation - providing a request or invitation for
construction issues is inadequate communication. construction project to ensure that it is completed
the bidders.
Poor Forecasting- Some clients and stakeholders may successfully.
Bid Preparation of Interest Parties - processing or
make some big asks Structural Organization – The structural organization is
submitting the bidding proposal to participate
Lack of Skilled Labor- Without enough skilled workers, the formal arrangements that are established to
Bid Evaluation and Selection - assessing and choosing
contractors face many challenges coordinate all activities in order to implement a given
proposals submitted by the bidders.
Cash Flow Issues- Problems with cash flow often cause strategy.
Contract Negotiation and Awarding - signing and
construction challenges
awarding of construction contracts.
The Structural Elements of an Organization
1. Men - These are the different members of
PC 2- Advanced Construction Methods and organization starting from the very top to the last
Preparing a Bid Package
Equipment workman of the enterprise.
I. Bid Solicitation - A formal request for bids
2. Materials - Represents the materials necessary in the
Contract - It is an agreement between two parties distribution of functions or in the attainment of its
Bid Solicitation Documents:
creating a legal obligation for both of them to perform objectives.
1. Invitation to Bid - provide information that enables
specific acts. 3. Machine - The tools necessary in producing its
potential bidders to decide whether to participate in
designed product.
the procurement at hand.
Requirements for a Valid Contract 4. Methods - The procedures and ways used in the
2. Request to Propose - a document issued by a project
Mutual Assent- Each party must have a shared course of its action.
owner to invite potential contractors or vendors to
understanding regarding what the subject matter of the 5. Money - The financial resources of the organization
submit proposal for specific project.
contract is.
Offer and Acceptance- One party must make an offer
by clearly communicating their intent to be bound in a The Major Elements of Organization Structure
II. Instruction to Bidders - Provide information
contract ● Distribution of functions - The functions to be
necesarry for bidders to prepare responsive bids, in
Consideration- This where both parties mutually performed, the groupings of functions, and the vertical
accordance with the requirements of the Procuring
exchange something of value in order to make the and horizontal task relationships among functions.
Entity.
agreement binding. ● Vertical and horizontal authority relationships - Who
III. Bid Data Sheet - consist of provision that
has the authority to do what.
supplement or specify in detail, information, or
● Communication and decision processes - The
requirements included in the ITB found in Section II.
Construction contract - provides a legal binding manner in which formal decisions are made and by
IV. General Conditions of Contract - a complete
agreement, for both the owner and the builder. whom.
document expressing the right and conditions of both
● Policies - Guidelines and rules of the organization.
parties.
4 Common Types of Contracts
Types of Project Management Organizational
IV. General Conditions of Contract
Lump Sum Contract- uses a fixed price for all work done Structure
on the project 1. Functional Organizational Structure - In this type of
Scope of Contract - it defines exactly what the parties
Unit Price Contract- prices out different categories structure, authority-driven decisions like budgeting,
have agreed to do for each other.
based on things like the type of task and materials used. scheduling, and purchasing equipment rest on the
Terms of Payment - it’s basically the payment both
Cost Plus Contract- requires the owner to fully pay all shoulders of the functional manager who possesses a
parties agreed on.
project costs on top of a separate payment to cover the significant level of expertise in the same field
Performance Security - is like a safety promise in a deal.
builder’s overhead and profit 2.Project-based oriented - organizational structure is
Inspection and Tests - refers to the process of
Time and Materials Contract- requires owners to pay the complete opposite of the functional organizational
examining and evaluating something to ensure it meets
for all project costs in addition to an agreed upon hourly structure, even though the organization may still group
specific standards.
or daily rate. staff according to their work functions.
Warranty - a commitment made by a seller pr
manufacturer to a buyer.
3. Matrix Organizational Structure - Matrix
Liability of Supplier - refers to their legal responsibility
Contract Documents - They are attached to the organization structure includes features of project-
for the products and services they provide.
Agreement identified therein as Contract Documents, organized and functional organizational structures
including all additions, deletions, and modifications.
1. Weak Matrix Organizational structure- the project
V. Special Conditions of Contract - assist the Procuring
Parts of a Contract Document authority would fall into the hands of a functional
Entity in providing contract-specific information in
1.Agreement- is used to describe the agreement signed manager as it is in a functional organization.
relation to corresponding clauses in General Conditions
by the Owner and the Contractor, excluding the 2. Strong Matrix Organizational Structure- has some
of Contract.
Contract Documents. similarities with that of a project based organizational
2.General Conditions- pertain to the roles, rights and structure in that the project manager handles a project.
VI. Schedule of Requirements - a schedule of all
obligations of the contracting parties, and the rules and 3. Balanced Matrix Organizational Structure- both the
materials and equipment required to be expressed in
procedures by which the parties and everyone project manager and the functional manager share
quantity and week/months to be delivered.
concerned will be able to meet their obligations and equal authority for the project.
● Framework Agreement - used when
perform the Works covered under the Contract.
materials/services cannot be accurately measured
Legal structure - is an organizational framework for
and/or is not advisable to be kept in stock.
how a business entity operates. It is governed by the
3. Special Provisions/Conditions- are instructions country’s legal system.
which are issued prior to bidding to supplement and/or
VII. Technical Specifications -A set of precise and clear
modify the Drawings, Specifications and/or General 3 main types of legal structures:
specifications is a prerequisite for Bidders to respond
Conditions of the Contract. 1. Sole Proprietorship - the business's founder
realistically and competitively to the requirements of
4. Specifications- are the written or printed description remains the sole owner. They retain complete
the Procuring Entity without qualifying their Bids.
of the work to be done describing qualities of the control over every aspect of the business.
material to be used, the equipment to be installed and 2. Partnership - By the contract of partnership,
VIII. Checklist of Technical and Financial Documents -
the mode of construction two or more persons bind themselves to
A checklist of relevant documents that are attached to
Technical Specifications (Specs)- is a written document contribute money, property, or industry to a
the bid package.
that covers the qualitative items of a project. common fund, intending to divide the profits
Legal Documents:
among themselves.
● PhilGEPS registration certificate. , Certificates from
3. Traditional Corporation - or C Corporation In
SEC, DTI or equivalent agencies. , Mayor’s Permit/
5.Drawings- are graphical are graphical presentations general, C corporations tend to be very large
Business Permit. , Tax Clearance.
of the Work, including supplementary details and shop companies.
drawings
6. Addendum- An addendum to the contract defines Factors to consider in choosing the right legal
Issues During Construction Phase
the definitions, sections, clauses, and terms that need structure
Weather Delays-Adverse weather conditions, such as
modifying, and all parties must agree to and sign off on 1.Owner liability - As a business owner, it's critical to
heavy rain, snow, or extreme temperatures, can
them. understand the level of personal liability that you may
significantly impact construction schedules.
7. Modifications- Contract modifications (frequently face, especially if the service or product you offer
Labor Shortages- Skilled labor shortages can hinder
referred to as "mods") are common actions for many involves higher risks.
construction progress, leading to delays in completing
contracting professionals. 2. Expenses and procedures - Starting a business as a
tasks and potential increases in labor cost.
sole proprietorship or partnership does not involve
Design Changes- Changes in project specifications or
much expense or paperwork.
design alterations can lead to delays and additional
costs
3. Taxes - The income tax status of your business is
influenced by the type of business structure you choose
4. Investment needs - In case your business depends
on investors, opting for a corporation could be the ideal
business structure.
The Role of a Legal Structure in Construction Contracts
1.Clarity of ownership and responsibilities - When a
business has a well-defined legal structure in place, it
can help to minimize the likelihood of disputes and
conflicts among business owners.
2. Personal asset protection Business owners must
take steps to protect their assets, both from a data
security standpoint and from a legal standpoint
TWO TYPES OF SCHEDULE NETWORK ANALYSIS
1. Activity on Arrow (AOA) -Tool for mapping and
scheduling activities, such as tasks or events.
Circles- referred to as nodes to represent events
Arrow- represents the activity and its duration.
2. Activity on Nodes (AON) Tool for mapping and
scheduling of activities that are represented by arrows
and nodes/box at each end to show the start and finish
of activity.
• focuses on tasks • can show any type of relationship
• (start to finish, start to start, finish to finish, and finish
to start)

3. Maximize profitability It is important to note that

the profitability of your construction company can be
significantly affected by the tax implications of different
legal structures
4. Promote investor confidence Many investors prefer
to invest in companies that have clear legal structures
and are held accountable for their actions.
5. Ensure business longevity Your choice of legal
structure for your business also affects its longevity and
continuity.

Construction Project Requirements - Are the specific

needs and goals that a construction project must meet
in order to be considered successful.

The Pre-Construction - Phase is the initial stage of a

construction project.
Project Proposal - construction requirements is
essential to outline the scope, objectives, and
specifications of a construction project
Feasibility Study - is a crucial step in determining the
viability and potential success of a construction project.
Contractor Selection and Contracts -Is a crucial step in
determining the viability and potential success of a
construction project
Permitting and Approvals - Obtain all necessary
permits and approvals from local authorities.

The construction - phase of a project is the stage in

which the actual building or construction work takes
place.

Scope of Work - Review and Ensure contractors

understand the scope.
Progress Report - Provide regular progress reports to
the project owner and stakeholders.
Quality Assurance Testing - Conduct required testing
and inspections on materials and systems to ensure
compliance with standards.
Health and Safety Compliance - Continuously enforce
health and safety regulations,
Project Schedule - Create an initial project schedule
that outlines key milestones and timelines

Post-construction phase - of a construction project

involves several key requirements and activities to
ensure the successful completion and transition of the
project to its intended use.

Final Inspection and Punch List - Conduct a final

inspection to identify any remaining defects or
incomplete items in the construction work.
Occupancy Permit or Certificate of Completion -
Obtain the required occupancy permit or certificate of
completion from local authorities, if applicable
Facility Management and Maintenance Planning -
Develop a comprehensive facility management plan
that outlines ongoing maintenance, repair, and
operational procedures

TOPIC 4

Planning - is the process of making plans for

something.
Scheduling - is the process of arranging or planning to
take place at a particular time.
Schedule network analysis - is an analytical technique
to identify critical path and list of critical project
activities.
Schedule network diagram - is a graphical
representation of the project’s activities.