VALUE PROPOSITION key customer segments?

TURN CORE COMPETENCIES INTO VALUES

CUSTOMER EXPECTATIONS  Ask yourself why someone should buy
 What does every customer want when from you instead of your competitors.
making a purchase?  Using the language of your customers,
 What are you looking for when you go to refine your competencies as your value.
buy a car, a television, computer,  If your answer is "best selection", "best
house, etc.? customer service" or "fast shipping"
your potential success may be limited.
VALUE PROPOSITION These qualities do not make a business
unique.
 Value - establishing how important it is
to the customer - the BENEFIT. STUDY THE COMPETITION
 Value Proposition - it is a statement
that explains the product offering and  Choose 2 or 3 competitors and study
it’s value to the customer. how they market their company and
products.
WHAT IS A VALUE PROPOSITION?  What is their value proposition?
 Can they defend it?
 A value proposition is typically a
 Map their core competencies versus
clear and transparent statement
yours.
that highlights a company's unique
value- creating capabilities to LOOK AT TRENDS IN YOUR INDUSTRY
possible
customers and stakeholders. It  Are things changing?
presents an opportunity for a person or  Can you take advantage of a trend and
target to feel that they are getting more grab an exciting position in the market?
than they paid for.  Process fieldbus
 Process safety
WHY DO WE NEED VALUE PROPOSITION?  Wireless
1. A strong value proposition will help  Industrial security
you to break through the clutter and DEFINE THE COMPANY VISION
get the customers attention.
2. Some of them are trying to use Product Leadership
heavy force of marketing to
 Unique products &services
overcome the weak force of their
 State of the art features
value proposition.
 Innovative solutions
3. It helps potential customers understand
why they should do business with Customer Intimacy
you instead of your competitors.
 Quality relationships with customers
10 STEP PROCESS IN VALUE PROPOSITION  Offer "complete" solutions
START WITH CORE COMPETENCIES Operational Excellence
 What are you really good at ?  Excel at attributes such as pride,
 A value proposition has to be what you quality, delivery, selection, availability,
do and who you are. It can't just be what etc.
you want to be and what you say you
are. IDENTIFY ONE CORE VALUE

STUDY YOUR CUSTOMERS  Be decisive about which of you choose

or decision.
 Who are your top customer?  Send a clear message to potential
 What problems do you solve for them? customers as to why they should buy
 What problems do they want to solved?
 Is there a new trend in any of your
 from you and to employees as to
what they should be doing.
 Choosing makes a statement as to what
your structure, core
competencies, business process and
culture will look like and provides
the customer profile upon which
you can build a well-
constructed business strategy.

BUILD A VALUE CHAIN

 Determine whether you can

support your top value across every
part of the company, from product
design to your channels for delivery
to your process for support.
 Make sure to identify areas in your
company where you are weak,
where you may break the value
chain.
 Commit to boost up that area to
support the value.
ARTICULATE THE VALUE PROPOSITON

 Refine your value proposition until

you can articulate it in one
sentence.
 We should be able to communicate
who your customers are, what you
provide to them and why they buy
from you.
 We should develop a value
proposition statement that everyone
in marketing will use as the starting
point for developing positioning or
messaging for products or services
 If you can, back up your assertion
by documenting what the customer
saves or earns by choosing you.
TEST THE VALUE
 Test the final value proposition with
customers to see whether it
resonates. As you go through this
process,
continually ask yourself these
questions:
"The best value propositions are constantly
evolving based on customer feedback and market
changes,"
 MARKET IDENTIFICATION AND ANALYSIS - identifies a set of characteristics and benefits that make a product different Conditions that Define a Beachhead Market
and better for a target audience.
Market Analysis 1. Customers purchase similar products
- the goal of product differentiation is to create a competitive advantage or to 2. Customers have similar sales cycles
Market analysis is the process of studying and understanding the conditions make your product superior to alternatives on the market. 3. Word of mouth communication between customers
of a market. It involves examining factors such as customer preferences,
competition, and industry trends to make informed business decisions. C. Market Structure

A large part of market research and an important component of business plan. Market Structure refers to how different industries are classified and
differentiated based on their degree and nature of competition for goods and
Importance of market analysis: services. Strategies for Creating New Markets

1. Understanding customer needs: Identifying the needs, Economic market structures can be grouped into four categories: perfect 1. Sell the market concept before building a product.
preferences, and behaviors of the target competition, monopolistic competition, oligopoly, and monopoly. 2. Highlight positive social and environmental impacts.
customers. 3. Incentivize your team to think “outside-the-box” continually.
2. Competitive advantage: Analyze competitors to differentiate TYPES OR CATEGORIES OF MARKET STRUCTURE 4. Work to build a compelling story around your new idea.
and position the business effectively. 5. Use social media and traditional media to build demand for
3. Identify Opportunities: By studying trends and 1. Perfect Competition change
competition, entrepreneurs can identify gaps or areas where 2. Monopolistic Competition
they can offer something unique or better. 3. Oligopoly Major Types of Market
4. Minimize risks: Reduces uncertainties by anticipating market 4. Monopoly
changes. CONSUMER MARKET
D. Market Segmentation and Size
5. Optimize marketing strategies: Target the right audience Individuals and households who buy goods for their own use or benefit are
with effective messaging and channels. A market segment is a group of people in a homogeneous market who share part of the consumer market.
common marketable characteristics such as interests, geography, age,
6. Enhance profitability: Maximize revenue by pricing products demographic, or lifestyle. Types of Consumer market:
competitively and meeting customer demands efficiently.
Commonly used in marketing strategies, market segments help companies 1. Fast moving consumer goods sector
Market Identification and Analysis optimize their product or service to suit a given segment’s needs. Often, 2. Consumer durables sector
market segments are used to identify a target market. 3. Consumer non-durable sector
In Market Identification and Analysis we have to consider 5 categories:
Market Segmentation BUSINESS MARKET
 Classes of Competitors
 Product Differentiation, Positioning • the process of separating, identifying, and evaluating All the organizations that acquire goods and services used in the production of
 Market Structure the layers of a market to identify a target market. other products or services that are sold, rented, or supplied to others.
 Market Segmentation & Size • seeks to identify targeted groups of consumers to
 Beachhead Market and Creating your market tailor products and branding in a way that is Types of Industrial market:
attractive to the group.
A. Competitors • helps companies minimize risk by figuring out which 1. Industrial market
products are the most likely to earn a share of a 2. Resale market
A competitor is a person, business, team, or organization that competes target market and the best ways to market and
against you or your company. If somebody is trying to beat you in a race, deliver those products to the market. GOVERNMENT MARKET
that person is your competitor.
Market Size Major buyer of goods and services example infrastructure project.
In business, we call a close a competitor a rival. In other words, rivals are
the same size and make similar products. • The "market size" is made up of the total number of INSTITUTIONAL MARKET
potential buyers of a product or service within a given
If two companies are leaders in their field, we refer to them as arch rivals. market, and the total revenue that these sales may This consist of schools, hospitals, nursing homes, prisons and other institution.
generate.
Largest firms that are arch rivals Distribution of the Product or Service
Three (3) Criteria to Identify Different Market Segments
There are 5 types of competitors: Distribution refers to how and when to move the product from the greenhouse
to the customer’s home, store display, or wholesaler.
 Homogeneity – common needs within a segment
Direct competitors - a firm that sells the same and services as you in the  Distinction – being unique from other groups Distribution strategies are; intensive, selective, or exclusive.
same markets.  Reaction – a similar response to the market
Product pricing strategies:
Potential competitors - a direct, indirect or replacement competitor that Market Segmentation Strategies
currently has no distribution in our markets.
Production costs refer to all of the direct and indirect costs businesses
1. Geographic Segments – customers are face from manufacturing a product or providing a service.
Indirect competitors - a firm that sells different of products and services but targeted locally, statewide, regionally, or
are in the same industry and same markets. nationally Marketing costs are the all expenses that the company makes to market and
2. Demographic Segments - customers are targeted sell its products and develop and promote its brand. These marketing costs
Future competitors - a firm that has business capabilities that would allow
by their age, gender, race, income, and education or expenses include expenses incurred to change the title of goods,
them to quickly take market share if they entered your markets.
level promotion of goods, inventory costs, distribution of goods etc.
3. Psychographic Segments - identification based on
Replacement competitors - a firm that sells products and services that are in
attitudes, beliefs, emotions, lifestyle, and hobbies Promotion cost is a cost companies incur to market their products
different industry that could be used as a substitute for your products.
4. Behavioral Segments - identification based on or services to consumers. Promotion expenses range from giveaways,
B. Product Differentiation and various patterns such as purchasing occasion and free samples, or other promotional gimmicks in order to help boost
loyalty status sales and revenue.
Positioning POSITIONING
E. Beachhead Market and Creating your Return of investment (ROI) is calculated by dividing the profit earned on an
- a strategic process that marketers use to determine the investment by the cost of that investment.
place or niche an offering should occupy in a given market, own Market Beachhead
relative to other customer alternatives. Common Pricing Mistakes:
Is derived from a military strategy that advocates that, as you are
- marketing moves to figure out ways to situate the product
approaching an enemy territory, you should plan and focus all your resources 1. Pricing too high relative to customers’ existing value
favorably in potential consumers' minds in relation to its
on winning a small border area that become a stronghold area from which to perceptions.
competitors. The marketing and promotional plan
advance into the enemy territory. 2. Failing to adjust prices from one area to another based upon
manipulates symbols, such as in displays and packaging, and
fluctuating costs and the customer’s willingness and ability to
communicates tailored messages targeted to people most
Beachhead Market pay from one market to another.
likely to value what is being marketed.
3. Attempting to compete on price alone.
A small market with specific characteristics that make it an ideal target to 4. Setting prices too low with the intention of raising the
DIFFERENTIATION
sell a new product or service. The choice of the market is based on the prices later.
compatibility between the resources available, the product, and the market 5. Discounting prices
- is the process companies use to make a product or service stand out
itself.
from its competitors in ways that provide unique value to the customer.
 DECISION MAKING
 Is the fundamental process of management
 Is a small fraction of a manager's time, but
it is their specific work
 Only executives make decisions based on
their position or authority
EFFECTIVE DECISIONS
 A decision is a judgment and a
choice between alternatives
 rarely a choice between right or wrong,
but between almost right and probably
wrong
 Opinions are the starting point for
making decisions, but they need to
be tested against reality
 A decision is not complete until it is
put into action
 Effective managers encourage
opinions and divergent opinions and
alternatives lead to right decisions
 The main task of a manager is making
policy and making the right
decision
EFFECTIVE MANAGERS
 Effective managers focus on
important decisions and try to find the
constant in a situation
 The decision-making process involves
considering alternatives and monitoring
the results
 The decision maker should consider
if the decision is really necessary and
one alternative is always doing
nothing
DECISION PROCESS
1. Identify the problem
2. Specify objectives and the decision criteria
(Capital, Time, Profits, Maintenance, Return of
Investment, Increase in Costs, and Risks)
3. Develop alternatives
4. Analyze and compare alternatives
5. Select the best alternative
6. Implement the chosen alternative
7. Monitor results to ensure the desired results
are achieved
REASONS WHY MANAGER INSIST ON DISAGREEMENT
BEFORE DECISION MAKING
1. Disagreement before decision making
safeguards against becoming hostage to the
organization
2. Disagreement provides alternatives and
stimulates imagination
3. Disagreement challenges and stimulates
imagination, forcing it to be reasoned
and documented
concentration. Effective manages do first thing
REASONS FOR POOR DECISION
first and they do one thing at a time.
 Errors made in the decision process
 Bounded Rationality – a term which refers
to the limit as a control on making
decision because of cost, human abilities,
time
technology and the availability of information.
 Sub-optimism – is the result of each
different department’s attempt to reach a
solution that is optimum for their
department.
ELEMENTS OF DECISION PROCESS
1. Classifying the Problem. Is it generic? Is
it exceptional and unique? Or is it the
first
manifestation of a new genus for which a rule
has yet to be developed?
2. Defining the Problem. What are we dealing it?
3. Specifying the answer to the problem.
What are the “boundary conditions?
4. Deciding what is “right,” rather than what
is acceptable, to meet the boundary
conditions. What will fully satisfy the
specifications before attention is given to the
compromises to make the decision
acceptable?
5. Building into the decision the action to carry
it out.
6. What does the action commitment have to be?
7. Testing the validity and effectiveness of
the decision against the actual course of
event. How is the decision being carried out?
Are the assumptions on which it is based
appropriate or obsolete?
BUDGETING THE TIME
Effective manager know that time is the limiting factor.
His does not start with his work. He starts with his time.
And he does not start out with planning, but start by
finding out where his time will actually go. Our daily
accomplishment is set by time the scarcest resource. In
the process, we call accomplishment as time.
 Time is a unique resource
 Time is absolutely irreplaceable
 Relations with other knowledge workers
are really time consuming
 Meetings. another common time
waster is mal - organization
HOW TO IMPROVE TIME MANAGEMENT IN
CONSTRUCTION?
1. Plan the project
2. Prioritize what's important
3. Improve focus
4. Practice Good communication
FIRST THING FIRST
 The one secret of effectiveness is
EMPLOYEE DISCIPLINE cannot discipline a group to teach a few
offenders.
 uses to bring employees behavior 15. Maintain a constant and sincere interest in
under control your people’s welfare on and off the job.
 purpose of discipline is preventive This reduces the need for disciplining to a
 Form of control to protect the interest of minimum
the company 16. Motivation is the secret of good
PRINCIPLE OF DISCIPLINE discipline. When a man is sufficiently
motivated, discipline will take care of
1. Disciplinary action should not be taken itself
unless there is an obvious necessity for
it
2. The reasons for disciplinary action should
be made clear
3. Give the man a chance to present his side
of the story, and do not argue
4. There should be no favoritism or
discrimination in any disciplinary
action
5. Reprimand should be given as soon as
possible after the occurrence of the act.
Right timing is important, but first have
all the facts
6. Forgive and forget. When disciplinary
action has been given, the supervisor
resumes a
normal attitude toward the offending employee
7. Never discipline anyone in the presence
of others
8. The discipline that is inflicted must be just,
but sufficiently severe to meet the
requirements of the situation
9. Disciplinary measure should be applied but
the immediate superior of the employee
affected, rather than by some other high
executive
10. In general, negative disciplinary action
cannot be successfully applied to a large
group of employees representing a
substantial position portion of one’s
organization. If there is poor discipline
among a large group, it is possible that
there is something vitally wrong in the
situation. The remedy is correction of
the situation, not disciplinary action.
11. In determining the nature and degree of
disciplinary action that is made necessary
by some improper act of an employee, the
intent should be considered
12. Discipline should be constructive. It
should show the offender how to correct
his errors and leave him willing and
anxious to improve rather than feel
bitter and resentful
13. Except in cases of extremely serious
offenses, no disciplinary action should be
permitted to take place until the
supervisor has actually talked the
situation over with the employee.
14. Discipline should not be administrated on
an entirely routine basis. Each case
should be treated individually. You
 CONCTRUCTION PRE-PLANNING
Planning is an art, in the art of planning exist only among human beings. This
power to be able to plan distinguishes man from the other members of the
animal kingdom.
The pre-planning establishes and determine the direction in success of
any construction project.
Unfortunately, seems that some engineers and constructors have not given
the pre-planning emphasis despite their one direction of going there.
Past experience have proven that there is no shortcut to sound
construction free planning. There is no new procedure to replace the
following four basic rules for any job.
1. The construction superintendent should be included in the
consultation at the very start of the planning stage. Do not just
present him later the finish plan and say: Here is the plan for
you to implement.
2. Make a job breakdown into components. This will simplify the
whole program.
3. Prepare a construction plan that will be consulted constantly.
Do not just file it in a drawer only to accommodate dust.
4. Take advantage of new tools, which have demonstrated in
saving time, or confusion. For instance, computer can be
used to layout on one sheet a detailed schedule according to
numbers of days, crafts, man-hours, costs, procurement and
completion of a process.
For whom and what are we planning for?
1. We are planning for the owners of the company when we
plan to achieve a profit by operating the minimum capacity,
utilizing the available resources.
2. We are planning for the employees when we plan to create
or maintain jobs.
Planning functions has four different dimensions, namely:
1. Planning is a philosophy
2. Planning is integration
3. Planning is a process
4. Planning is a collection of procedures.
PLANNING IS A PHILOSOPHY
Looking ahead is a way of thinking a concern about the future effects of today's
action. Planning involves a state of mind that recognizes the need for
orderliness and the value of direction.
PLANNING IS INTEGRATION
both long and short range plans provides a unified structure to give purpose to
the organizational units involved.
Project construction management differs much from management of more
traditional activities. It is a unique one time operation with one major objective
- to accomplish an specified task in a limited time framework. The main feature
in project construction is the project manager who oversee a variety of
operations that involves repetitive activities, and other various works.
Generally, construction projects have some elements in common. The problems
of planning and coordinating project activities can be quite formidable for large
projects, which typically have a hundreds or even thousands of activities,
carefully planned and monitored if the project is to proceed according to the
following schedule at a reasonable cost.
1. Project goals must be established in priorities or set.
2. Different works must be identified and time estimate must be
determined.
3. Resource requirement must be projected, and budget must
be prepared.
4. Once underway, progress must be monitored to assure
achievement of the goal.
The project manager's mission is to plan, coordinate, control and accomplish.
His achievement can probably be traced to his success in managing people.
Similarly, people at every tier of corporate hierarchy, exercise essentially the
same management principles to lead other people towards the accomplishment
of organizational objectives.
Managerial competence is a function of a manager's character, knowledge,
and experience. These three ingredients interact to mold a particular style of
management. Styles may be altered or fashioned by education gain from
formal training in work seasoning. An advantage of studying management
techniques is the opportunity it allows to explore and develop managerial
skills without suffering the consequences of trial in error learning.
THE WORKSHEET
The initial move to get the project under way is for the project manager to
convene a preliminary discussion on the documents, father more information
as may be available at the early stage. There should be additional and pre-
planning available such as, the client's required operational date.
What the project manager needs to know our:
1. The logical construction sequence that must be followed.
2. The quantity and the delivery dates of various materials to be
used.
3. How much and what kind of manpower will be needed.
4. When to start and complete the job on time.
The first step in construction pre-planning is to prepare a graph and plotting
the anticipated date of delivery of all major equipment at the site. The optimum
time for each construction activities could be analyzed. Severe craft peaks
and uneconomical use of equipment will appear on the projected graph, which
could then be adjusted to prevent future conflicts in the field. The worksheet
represents a plan of action presented graphically by a critical sequence of
function of subsidiary activities contain within a compact period of time.
On the other hand, manpower distribution by computer, lessen engineers
time but the result is less realistic because it is applied on the average
manpower loadings to the computer, The manpower summary result will be
lower than might be realistically anticipated where time is available, the
manual method prepared by an experience engineer is preferred
In either case, what is needed is the rate of anticipated manpower expenditure
on the basis of work category or classification or on the basis of crafts. In
addition, It is a worthwhile in instrument in establishing the limit extremes of
manpower application to summarize the manpower loading into two ways:
1. With all functions perform in their earliest position on
the timetable.
2. With all functions perform in their latest starting position.
Project Engineers Review
The project engineer must:
1. Review the timetable thoroughly
2. Raise questions on its overall logic and workability.
3. Offer constructive criticism on detailed work function
in interrelated activities.
Invariably, review will resort in a minor vision of the schedule. After gathering
most of the detail information and made part of the timetable, the entire
program is broken down into several component parts
1. By graphical reporting, manpower and percentage
accomplishment is easier to evaluate showing the
general direction and condition of the job.
2. Data are received by way of one page weekly progress
report and a weekly field payroll report.
3. A field man-hour report is submitted every month.
By close control and evaluation of field cost and man-hour expenditures it
can easily detect the following:
1. Possible budget man-hour overruns
2. Craft peaks
3. Weakness in supervision coverage
4. Inadequacy of tools and equipment
A daily look at the graph, alerts the Project Manager and his home office to the
possible need for a radical action such as:
1. Manpower reallocation for elaborate re-scheduling or
2. For a speedy economic analysis of the whole project to
determine whether extra manpower or two shift operation may
be necessary.
A periodic visit to the construction site is necessary for the various members
of the central construction department staff in audit the program so that:

TIME TABLE 1. A first hand review of the progress is made and the
general status of the work is compared with the timetable
PLANNING IS A PROCESS
The project manager should conduct one or more informal sessions:: with key and discussed with key field supervisory staff.
Goals and objectives are the most obvious consequences of the planning personnel assigned to the project such as: 2. Home office assistance is offered to the field superintendent in
process. A winning plan includes: pushing particular phrases of the project that may be held up
1. The construction superintendent in such areas as drafting or procurement.
1. The strategy that defines how much has to be done to 2. Job buyer 3. Suggestions are made and discussed with the
achieve the objectives. 3. Drafting room coordinator field organizations as to how its progress can be
2. The sequence of events that satisfies those strategies and 4. Job expediter improved
3. The assignment that lead to the accomplishment of the events.
During the session, the binary construction program or worksheet is reviewed Discussion and review of construction problems at the site assures a clearer
PLANNING IS A COLLECTION OF PROCEDURES to determine whether engineering work and procurement of materials can be understanding of the work status for the following actions:
accomplished at the rate and in the sequence as programmed in the schedule.
All companies make plans ahead to some extent, and apply their own doing 1. Alternate solutions may be reviewed
so, In small company, one person may do it all, but larger companies have The sequence of construction activities, which are related to optional early and 2. Exchanging ideas for a better solution
standard procedure for formulating and carrying out plans. late starts, will serve as a running list of individual job components, with 3. To implement results as agreed in the meeting
notation to work activities with greater importance in priority over the others.
THE PROJECT MANAGER Preliminaries and Site Management
One important function of the construction planner is the preparation of an
The central figure in a project is the project manager. He bears the accurate manpower estimates assigned to each function. This can be done After a contract is awarded, the contractor has to:
ultimate responsibility for the success or failure of the project. on the basis of manpower category of the works like working on
foundations and underground facilities or by craft such as carpenters, 1. Determine the key personnel to supervise the work
The job of project manager can be both difficult and rewarding. However, tinsmith, plumber, electrician, laborers or by group methods. The 2. Make provisions for the equipment to be used.
reward of the job project manager comes from: Manpower distribution and classification can be done in two ways or by the 3. Determine the location and methods of erecting temporary
use of computer by manual method, it takes more time but results in a structures such as:
1. The benefits of being associated with the successful project. more accurate and realistic summary as an anticipation of the need without a. a Job offices
2. The personal satisfaction of seeing it through to its conclusion reverting to an average b. b. Storage sheds
3. The challenge of the job, and working with the other people. manpower distribution. c. c. Workshops
d. d. Roadway, etc.
e. e. Bank house for workers and facilities.
In carrying out the construction work, idle time and unnecessary cost should plant
The contractor is generally responsible to the owner for the following duties
be avoided. Time saving devices such as tele- phone, loudspeakers, signal requirements.
posts, traffic control, sign board location and other economy measures should
1. Providing and making access roads with due regards to
be
the convenience of construction.
installed immediately upon commencement of the work Before the work get
2. Erection of site office in a central position to facilitate checking
started, it should be first established from which the buildings may be of all site activities
demarcated on the ground.
3. Erection of store shed of adequate capacity to ensure,
a. Protection of materials against damage
The excavator with his equipment should start cleaning. stripping and digging
b. Protection of materials against deterioration
operations. Material deliveries should also start as soon as possible and a labor
c. Prevent materials from wastage and
force started the excavation for the foundation work, etc. If all these operations
get under way without undue delay, the job will have a healthy aspect, high
pilfering The contractor is generally responsible to the owner for the
morale and satisfaction of all concerned from the owner to the contractor and
down to the lowly laborers. following duties:
“The contractor should procure sufficient copies of the plan and
4. Construction of temporary quarters and ancillaries for
specification to distribute among his supervisory staff. “
labor with due regard to site of works, amenities and
hygienic
Preliminaries in Organizing a Construction Job
conditions
5. Appointment of supervisory staff possessing technical
Project undergoes series of stages which includes.
knowledge and capable of controlling the work and labor
1. Planning 6. Early arrangement for construction equipment i e
2. Execution of major activities a. Scaffolding
3. Project phase out b. Formwork
c. Instruments and machinery with necessary
Project construction life cycle requires various requirements such as: screw fuel and parts etc
d. Ladders
1. The site must be found and boundaries relocated e. Tools
2. Plan must be drawn. f. Instruments and machinery with necessary
3. Plan must be approved by the owner screw fuel and parts etc.
4. Building permit must be secured
5. Succession of personnel follows The Engineer or Architect on behalf of the owner is also responsible for the
following duties
Succession of personnel is the rotation of personnel who will be doing
different kinds of job according to their specialties. For instance. 1. As representative of the owner

1. Those doing the site relocation and preparation, and laying of a. Act as interpreter of the plan
foundation b. As guardian and arbiter between the
2. Erecting the foundation and column, floor and roof framework owner and contractor
3. Constructing walls and partitions 2. Maintain site records and documents like
4. Plumbing and water supply connections including drainage a. Layout plans
system b. Contract documents
5. Mechanical equipment c. Time and progress chart
6. Electrical and communication wiring system d. Work diary
7. Installation of kitchen, bathroom fixtures and appliances e. Contractor's order book
8. Interior finishing work f. Records of tests
9. Doors and windows g. Progress report
10. Painting and varnishing, and other finishing works h. Measurement book, etc

The main objectives in the preliminaries of organizing a construction job Planning Program and Progress Chart
are:
The most important part of the works organization are:
1. To secure the necessary licenses and building permits
2. Prepare a time and progress chart 1. The preparation of a comprehensive time and progress
3. Have an access to the site or a temporary roadway chart for the execution of the work
4. Construction of boarding, fences, and temporary shed 2. The periodic revision of the chart as circumstances demand,
5. Construction of temporary field offices for the staff and the regular comparison of progress chart made with
6. Arrangement for canteen facilities the program.
7. Cleaning and leveling the site.
The project manager is required to prepare an approved time and progress
8. Demolition of existing structures
chart, which is generally part of the main contract documents
9. Disposal of materials obtain from the demolition
10. Shoring to adjoining structures 1. The time and progress char must show an analyses of the
11. Arrangement for temporary water and electric supply chief elements and types of construction involved in the
12. Allotment and preparation of storage space for use project
of contractor and sub-contractors 2. The scheduled dates of commencement and completion of
13. Allotment of space for borrows pits or other sources of fill every stage of the main contract and of sub-
to be brought in
contracts
14. Provision for drains and soak-ways
15. General site problems including any special features Besides of being the standard requirement, the chart, automatically shows and
offer the following information
Organization of the Work
1. The sequence of operations
Organization of the work, consist of making proper assignments and 2. The target time and date for their completion
sequence of the works in a systematic .The organization of the work is the 3. The rate of which they must be carried out
responsibility of the contractor under the direction of the supervising 4. The owner's staff and the contractor's staff should be familiar
Architect or Engineer with the information given in the chart and should constantly
strive to carry out the work according to the projected rate
There are two independent but related spheres of control and responsibility
of accomplishment.
that exist in the project construction, namely
5. If some operations are to be done by subcontractors, they
should be notified in advance and given a clear under- standing
1. The owner is represented by his Architect or Engineer
of what exactly is expected from them.
2. The contractor
6. The chart also tends to prevent changes in design and lay- out
with consequent delays and increased in cost. It also
provides essential information regarding labor, materials and
MAINTAINING TIME AND PROGRESS CHART

The making of time and progress chart is a matter of trial and error; it
requires a consideration of alternative methods and the effect of each event,
resulting in an orderly arrangement of events and an ultimate savings of
time and cost.

Planning and scheduling with Gantt chart

The Gantt chart is a tool used for planning and scheduling simple projects
with the chart and the project engineer can initially schedule project
activities and to monitor progress over time by comparing plant progress
to actual progress

The Gantt chart is a tool used for planning and scheduling simple projects
with the chart and the project engineer can initially schedule project
activities and to monitor progress over time by comparing plant progress to
actual progress

The advantage of Gantt chart is it simplicity, making it very popular. Gantt

chart however fails to reveal certain relationships among activities that can
be crucial to effective project management.

For instance, if one of the early activities would have to be delayed it is

because they could not start until the activity was completed. Conversely,
some activities may be delayed with the affecting the overall project
schedule

MATERIALS AND SUPPLY

The Buying of materials is an important activity in all construction works. The

contractor has to determine his material requirement and schedule to the
sequence of its deliveries. There are items which requires time for the
preparation of shop drawings and fabrication before installation. Hence, the
list of material requirements from the bill of quantity should be made without
delay.

The contractor should refer to the material quotation received at the time
of preparing his bid for the job which can be used as the basis of
negotiations with the suppliers. A purchasing program for construction
material should be prepared according to its priority.

Confusion usually results from delay and sorted materials of day-to-day

requirements if they are ordered at 11th hour. The purchasing program will
facilitate the withdrawal of materials and ensure prompt delivery by the
supplier because of the plan schedule of deliveries purchase orders are
prepared in triplicate, with original going to the job site.

A purchase order form should contain all the information such as;

1. 1.description of the materials

2. 2.quantities required
3. 3.time and place of delivery
4. 4.unit price
5. 5.Amount

FINANCIAL AND BUDGETING

Money is a universal lubricant, which keeps a business enterprise dynamic.

Without sufficient financing a business cannot get started and without adequate
budgeting a business one started cannot reach its full potential.

Construction business requires sufficient funds to cover its operation to

maintain equipment, purchase of the materials and supplies, to pay salaries in
wages to cover storage fees, transportation and reserve for other services
including SOP. These are current operations for the funds to cover them are
called working capital.
PROFIT MOTIVE proposition. This is under the principles of the participation as a means toward
cooperation. Participation in the preparation of budget serves to familiarize the
personnel with the problems involved.
In a competitive construction business, the profit motive is a predominant
factor of considerations For upon it may rest the justification for and in fact
THE FINANCIAL BUDGET
the very survival of the company. No one feel secure about investing in or
doing Financial budget represents a summary of the anticipated income and
business within a venture that appears to be skidding downward. disbursement for the budget period. The purpose is to plan for allocations of
working capital as presented by the current assets of the company. Data for
THE BUDGET
financial budget are derived from the budget as prepared by different
department.
The budget is the long-term responsibility of management to use investment
that will yield the largest possible profit and it is the function of budgeting
The financial budget must forecast monthly or quarterly cash receipts, making
to plan the profit profile.
room for additional funding if needed for current expenses. It requires
accurate budgeting of income from various sources such as accounts
A budget is a means towards an end not an end within itself. Budget was
receivables and cash transactions.
made to serve a purpose they establish goals wherein each department and its
workers must contribute their design share in accordance with the unified plan.
Expenditures may be planned in consideration of the following
The budget must lead to precision and confidence among the employees under
the following principles; 1. 1.The absolute necessities of the budget of various department
such as weekly or monthly requirements of materials for
1. a department head knows what was laid out for his department
construction, payroll etc.
to accomplish
2. limitation of available cash.
2. he knows what is expected of him
3. he knows when he was done a good job or when where he
Short term loan is availed of whenever there is a large construction contract.
is falling behind with this match of the worry of uncertainty
financial budgets acts as a negative control over the other department,
is eliminated
especially when capital is limited but urgently needed in time of rapid
construction where additional capital and equipment is necessary.
Budget should be a conservative aid to all departments within the organization
toward the common goals. Unfortunately, this purpose is frequently
PROCUREMENT PROCESS
misunderstood giving an early impression and meaning to the budget as;
In construction projects, the importance of procurement in ensuring timely
1. A control expenditure published in the minds of the
delivery of the right materials cannot be underestimated. The absence of even a
subordinates. An attitude that budget is only a negative control
minor item, like common wire nails, can halt activities, causing work stoppages
for which belief has led to the “padding” of department budget.
and project delays. In general purchasing agent is made responsible for
2. The idea therefore in which department is to propose as large
maintaining the following major procurement factors:
and allotment of expenditures as possible that when all budgets
were assembled and the reduction is necessary, each
1. 1.Quality of the materials
department felt that it was the subject of discrimination. Thus,
2. 2.Quantity of the materials
the budget has become a source path and a factor of
3. 3.Time of delivery
disintegration among the personnel.
4. 4.Price of the materials
Types of budgets. there are two principal types of budgets.
The procurement department in this agent are expected to:
1. Static or fixed budget - This type of budget depends upon
1. Know and maintain record showing the materials and their
the ability to predict income with a list a reasonable degree
possible substitute. sources of supply, prices and quantities
of accuracy. A fixed sum of money is allocated for
available.
expenditure with a fixed budget operation for a specific
2. Review specification for possible simplification and
period.
standardization of the materials as for unreasonable
2. Variable or flexible budget - This type of budget, recognizes
requirements.
than reliability of income prediction and make provision in
3. Negotiate with supplies for possible extension of credit.
advance for variation and construction expenditure in
4. Gather and analyze price quotation and fluctuations.
accordance with variation income. Variable budget is
5. Place orders with suppliers.
constructed in anticipation of variables income. It provides
6. Follow up purchase orders for delivery as specified.
advance for orderly change in the volume for construction and
7. Audit invoice to check compliance with the great terms and
expenditures
conditions.
8. Maintain records of all purchases.
Fixed cost is one that is constant in total amount for a given period. for
9. Coordinate with other department on all matters pertaining to
example, the salaries of major executives, capital tax, depreciation and the like,
procurements.
remain construction activities.

Variable cost increases or decreases in proportion with the volume of INVENTORY CONTROL
production and construction activities other items such as direct labor and
Effective inventory control is aimed at providing an adequate but not excessive
direct material caused vary in proportion with the amount of contract which
supply of materials at hand at all times to meet operating requirements.
are called variable cost.
However, for most companies, inventories performed to functions.
In essence, simplicity in budgeting should be a key virtue, minimizing detailed
1. they act a safety stock of materials or in effect, short Term
clerical work in the preparation and operation of the budget. This approach not
insurance against fluctuations in supply.
only cuts unnecessary costs but also fosters clear interpretation and control of
2. Inventories permit a company to operate with disconnected
the budget.
processes in the construction and disbursement cycle.
There are two types of variable budget.
SITE MANAGEMENT OF THE WORK
1. Step budget
Safety in the project construction must be given a primary considered from the
2. Variable rate of cost per unit of work
mechanical side to the legal angles of workman’s compensation or even as a
matter of training and motivation towards safe work practices for workers. A
Step Budget - is a series of budget setup at the different level of construction
safety minded project engineer will make adequate provisions for safety
volume or contract this is anticipated on variations in volume were changes
measures to;
in cost will occur such as additional shifts, building and supervisory
personnel.
1. .Minimize manual handling hazards of materials.
2. Will locate control and fuse panels where they can be reached
Variable Rate - cause is calculated as an average rate between two points of
safely.
minimum and maximum construction operation.
3. Will install strong and rigid forms and scaffoldings.
BUDGET PREPARATION 4. Will insulate all live wires and screen high pressure areas.
5. Will adequately guard belting and line shafting even if it has
The preparation of budget estimate in each department is a committee normally accessible.
PLANNED MAINTENANCE

Efficient operation in construction relies on regular maintenance of both

the plan and equipment. Buildings deteriorate over time, but maintenance can
slow this down. Machines, affected by wear and tear, corrosion, and dirt,
require proper periodic maintenance. This involves planned shutdowns for
repairs and a preventive maintenance program, including cleaning,
servicing, inspection, and part replacement.

Preventive maintenance is vital for continuously operating construction

equipment. Investigations into failures identify causes, and statistical
records assess the program's effectiveness.

Maintenance for the machine and equipment is very costly, continuity of

operation demand that the following general procedure should be carried out:

1. Time of each equipment for servicing is planned in advance.

2. Important items of equipment the request regular cleaning
and maintenance or liable to sudden failure should be ready
at hand for substitution and anytime of failure or signs of
approaching failure.
3. Record should be maintained and analysis made of
repetitive failure.

Regular and prescribed inspection should be made for signs of

impending failure.

Some engineers argue that the expense of regularly inspecting equipment may
outweigh the cost of preventing potential failures. They stress the
unpredictability of sudden breakdowns, making it challenging to foresee issues
like a fractured drive shaft or a malfunctioning hydraulic valve through
inspections alone. Assessing the cost-effectiveness of preventive
maintenance is crucial, questioning whether a small preventative effort
significantly reduces the need for extensive repairs.

For machinery with a history of operation, past failure records provide

insights into timing and extent. Calculating expected expenses based on the
probability and costs of failures guides the preventive maintenance program
to minimize overall maintenance costs.

However, economic considerations sometimes yield to factors like property

damage or employee safety concerns. The frequency of inspections depends
on the nature of the item's importance to operations and safety. General
machinery inspections can be scheduled at intervals, such as monthly, based
on service volume.

EQUIPMENT RENTAL

The trend in construction business is to have equipment rented. In very

recent years, they have been a significant swing toward the rental of
equipment as
opposed to outright purchase. This trend has found particular favor in
rental plants for construction equipment, delivery trucks, materials
handling trucks and office equipment.

Renting equipment offers the advantage of no capital outlay, no maintenance or

servicing worries for the user, and the rental cost fully detectable on income
tax classified as current business expense.