Advanced Construction

Methods and Equipments

Module 1

Engr. Ralph T. Crucillo

Department of Civil Engineering
College of Engineering and Information Technology
 • Construction - refers to the process of building
something such as house, bridge, ports dikes
and so on.

Introduction • It may include: demolitions, rebuilding/

renovation, alterations or additions to
buildings and others normally undertaken by a
person carrying on business or contractor.
 International Space Station

Three Gorges Dam

Some
famous
New Yor Subway System
Construction
Projects Jubail II

Great Man-Made River

International Space Station
Three Gorges Dam, China
New York Subway System
Jubail II, Saudi Arabia
Great Man-Made River, Libya
 ACS Actividades de Construccion y Servicios, Spain

Hochtief Aktiengesellschaft, Germany

VINCI, France
Some
China Communications Construction Group Ltd., China
Famous
Construction Bouygues, France

Companies Strabag, Austria

Fluor, USA

Bechtel, USA
VINCI, France
ACS Actividades de Construccion y Servicios, Spain
Hochtief Aktiengesellschaft, Germany
 • It is one of the largest industry in the
Philippines. It has been the fastest growing in
the Asia-Pacific before the pandemic.

Construction • While construction has traditionally been a

very conservative industry, the increasing rate
Industry of technological development and growing
international competition in the industry are
serving to accelerate the development of new
construction methods, equipment, materials
and management techniques.
Construction Contractors

Companies and individuals engaged in the Contractors because they operate under
business of construction are commonly
a contract.
referred as construction contractors or
simply contractors.
Construction
Contractors

Contractors may be classified as:

• General Contractor
• Specialty Contractor / Sub
contractor
General Contractors

Engage in a wide range of construction activities and

execute most major construction projects.

When they enter into a contract with an owner to

provide complete construction services they are
called prime contractors.
 Limit their activities to one or more
specialties such as:

Electrical Plumbing Heating

Earthmoving
work work ventilating

Specialty
Contractors
Often employed by prime contractor to
accomplish some specific phase of a
construction project.
Contractors in the Philippines
Construction Industry Authority of the Philippines (CIAP)
• created to promote, accelerate and regulate the growth and
development of the construction industry in conformity with the
national goals.
• Mandated under P.D No. 1746 dated November 28, 1980
• Under this PD, CIAP shall exercise authority, jurisdiction and
supervision over the following agencies which shall act as its
implementing arms:
• Philippine Contractors Accreditation Board (PCAB)
• Philippine Overseas Construction Board (POCB)
• Philippine Domestic Construction Board (PDCB)
• Construction Manpower Development Foundation (CMDF)
Philippine Contractors Accreditation Board (PCAB)

• RA No.4566,s.1965
• Issue, suspend and revoke license of contractors
• Classify and qualify applicants for contractors’ licenses
by written or oral examination, or both, and require an
applicant to show at least two years of experience in the
construction industry, and knowledge of the building,
safety, health and Philippine laws and the rudimentary
administrative principles of the contracting business,
deemed necessary for the safety of the contracting
business and the public
Philippine Overseas Construction Board

• PD No. 1167, s. 1977

• Formulate strategies and programs for
developing the Philippines overseas
construction industry.
• Regulate and control the participation of
construction contractors in overseas
construction industry.
Construction Manpower Development Foundation (CMDF)

• PD 1746
• to formulate an overall construction manpower
development plan and strategies and develop and
implement manpower training programs for the
construction industry; among others.
• Develop a funding mechanism in cooperation with
the construction industry to enable it to carry out
its functions by collecting fees and undertaking
income generating activities
Philippine Domestic Construction Board
• PD No. 1746, s.1980
• Formulate and recommend appropriate policies
and guidelines for pre-qualification, bidding and
contract award for public infrastructure projects
• Monitor and evaluate information on the status of
public construction projects, as well as on the
performance and contracting capacity of
contractors engaged in such projects
 • As of February 2020 there are 12,942
registered licensed contractors in the
Contractors in Philippines. (Source: PCAB)
the Philippines
 Major division of construction industry:

Vertical Construction
Construction
Industry Horizontal Construction

Division Other specialty divisions like:

• Industrial construction
• Process plant construction
• Marine construction
• Utility construction
 Also called building construction

As the name implies, involves the

construction of buildings.
Vertical
Construction May be subdivided into:

• Public
• Private
• Residential
• Non-residential
 Also called heavy construction

Includes:

• Highways
Horizontal • Airports
Construction • Railroads
• Bridges
• Canals
• Harbors
• Dams
• And other major public works
Construction in the Philippines

• The number of constructions in

the first quarter of 2021
recorded a total of 33,627,
indicating an annual expansion
of 1.4 percent. This increase was
in contrast with the previous
quarter’s annual drop of -11.3
percent. In the first quarter of
2020, the number of
constructions decreased by -
23.0 percent annually.
Construction in the Philippines
Construction in the Philippines
Construction Project Development
• Construction projects develop in a clearly sequential or linear fashion.
The general steps are involved as follows:
1. A need for a facility is identified by the client
2. Initial feasibility and cost projections are developed
3. The decision to proceed with conceptual design is made and a design
professional is retained.
4. The conceptual design and scope of work is developed to include an
approximate estimate of cost.
5. The decision is made to proceed with the development of final design
documents, which fully define the project for purposes of construction
6. Based on the final design documents, the project is advertised and
proposals to include quotations for construction of the work are solicited.
Construction Project Development
• Construction projects develop in a clearly sequential or linear fashion.
The general steps are involved as follows:

7. Based on proposals received, a constructor is selected and a notice to the

constructor to proceed with the work is given. The proposal and acceptance of
the proposal on the part of the owner constitute the formation of a contract for
the work.
8. The process of constructing the facility is initiated. Work is completed and
the facility is available for acceptance, occupancy and utilization.
9. In complex projects, a period of testing decides if the facility operate as
designed and planned. This period is typical of industrial projects and is
referred to as project start-up.
Construction Project Development
• Construction projects develop in a clearly sequential or linear fashion.
The general steps are involved as follows:

10. The facility operates and maintained during a specified service life.
11. The facility is disposed of if appropriate or maintained in perpetuity.
Relationship
Between
owner, designer
and constructor
 • Construction employing an owner
construction force
How • Owner management of construction
• Construction by a general contractor
Construction is • Construction using a design/build
Accomplished contract
• Construction utilizing a construction
management contract
Construction employing an owner construction
force

• Many industrial organizations, as well as number of

governmental agencies, possess their own
construction forces. Although these forces are utilized
primarily for performing repair, maintenance and
alteration work.
Owner management of
construction
• Owners utilize their construction staff to
manage their new construction. The work may
be carried out by workers hired directly by the
owner, by subcontractor or combination of
these two methods.
Construction
by a general
contractor
Construction using
a design/build
contract
Construction utilizing a
construction
management contract
• Construction of a facility
utilizing a construction
management contract, is also
somewhat different from
conventional construction
procedure. Under the usual
arrangement, also known as
Agency Construction
Management, a professional
construction manager acts as
the owner’s agent to direct
both design and construction.
Three separate contract are
awarded by the owner.
Codes and Regulations
• Building Code
• Zoning Regulations
• Environmental Regulations
• Safety Regulations
• Construction Professions
 • Relates to the methods or techniques used to
place the physical materials and elements of
construction at the job site.
• Technology can be broken into two words –
techno and logic.
Construction • Logic – addresses the concept of sequence or
procedure. Addresses the order of things.
Technology Something is done first until result is
achieved.
• Technical – adding this leads to the idea that
technology has to do with the technical
sequence in which something is done to
produce an end result. Ex. Placing concrete,
excavating tunnel and so on.
 • Addresses how the resources available
to the manager can be best applied.
4M’s of construction resources:
Construction • manpower,
•
Management •
machine,
materials and
• money.
Preparing a Bid Package
Lecture 2
Engr. Ralph T. Crucillo
Department of Civil Engineering
Bid
• Refers to an offer made by an individual or corporation to purchase
an asset.

Bid Package
• Term used to describe all the documents that are necessary in order
to respond to and participate in what is known as an invitation to bid.
Reasons why Contractor Bid
• Profit
• To keep their equipment in operation and prevent the loss of skilled
workers and managers.
• Desire for prestige and the maintenance of goodwill with regular
clients
• To maintain relationship with the owner
Project Concept and Need
Project Concept and Need
• Each project has a life cycle triggered by the recognition of a need
that can best be addressed with the construction of a facility.
• Public entities (city, state, and government) construct buildings and
required public structures to enhance the quality of life. Bridges,
tunnels, transportation facilities, dikes and dams are typical of public
projects designed to meet the needs of community and the society in
general.
• Private entities (commercial firms) build facilities that provide goods
and services to the economy. Typically driven by the objective of
realizing a profit. Projects like manufacturing plants, hospital, hotel,
commercial buildings, and etc.
Establishing Need
• The first step in any project is the establishment of a need and a
conceptual definition and refinement of the facility that will meet
that need.
• Feasibility study - an analysis that considers all of a project’s relevant
factors including economic, technical, legal and scheduling
considerations to ascertain the likelihood of completing the project
successfully.
• Private related projects consider economy and profit
• Public and community-service related projects do not typically involve
profit. Improving the quality of their services.
Formal Need Evaluation
• In deciding whether or not to proceed with preliminary and final
design of a given project, three items should be developed during the
conceptual portion of the project cycle. The following elements
provide input to the decision process:
1. Cost/ benefit analysis
2. Graphical representation of the project, a layout diagram of the facility and/
or three-dimensional (3D) depiction that may be part of a building
information model (BIM)
3. Cost estimate based on the conceptual-level information available.
Formal Need Evaluation
• The cost/benefit analysis in the case of commercial or profit-based
projects is simply a comparison of the estimated cost of the project
against the revenues that can be reasonably expected to be
generated. In public and other non-profit-based projects (e.g.,
monuments, churches, and museums), development of the benefit to
be achieved is more difficult to pin down.
Formal Need Evaluation
• For instance, if a dam is to be constructed on the Colorado River, part
of the benefit will be tangible (i.e., developed in dollars) and part will
be intangible (i.e., related to the quality of life). If power is to be
generated by the dam, the sale of the electricity and the revenues
generated are tangible and definable in dollars amounts. Much of the
benefit may, however, derive from control of the river and the
changing of the environment. This dam will prevent flooding of
downstream communities and form a lake that can be used as a
recreational resource
Conceptual Drawings and Estimates
• In seeking funding for entrepreneurial projects such as hotels,
apartment buildings and complexes, shopping malls, and office
structures, it is common practice to present conceptual
documentation to potential funding sources (e.g., banks and
investors). In addition to a cost/benefit analysis, graphical information
to include architect’s renderings or sketches as well as layout
drawings, 3-D computer models and BIM assist the potential investor
in better understanding the project. For this reason, such concept
drawings and models are typically part of the conceptual design
package. A contractor who has decided to bid on a project must then
prepare a detailed cost estimate. A cost estimate based on the
conceptual drawings and other design information (e.g., square
footage of roof area, floor space, and size of heating and air
conditioning units) is prepared.
Conceptual Drawings and Estimates
• The first step in preparation of a cost estimate is to take off (extract)
the quantities of material required by the plans and specifications.
• These quantities are then extended (or multiplied by unit cost
estimates) to provide a total estimated material cost for the project.
• Similar estimates are made for labor, equipment and subcontract
cost. The costs of equipment, labor and material are often referred to
as direct costs.
• Next, estimates are made of the administrative and management
expenses that will be incurred at the project site, these cost are often
referred to as job overhead or indirect cost.
Conceptual Drawings and Estimates
• After all project costs have been estimated, it is necessary to add an
additional amount (or mark up) for general overhead and profit.
• General overhead must cover the cost of all company activities not
directly associated with individual construction projects. Includes:
salaries of headquarter personnel(company officials, estimators,
clerks, accountants, etc.), rent, utilities, advertising, insurance, office
supplies and interest on borrowed capital.
Preliminary and Detail Design
• Once the concept of the project has been approved, the owner
desiring the construction retains an engineer or an architect.
• The end product of the design phase of project development is a set
of plans and specifications that define the project to be constructed.
• The drawings are a graphical or schematic indication of the work to
be accomplished. The specifications are a verbal or word description
of what is to be constructed and to what levels of quality.
• When completed, they are included as legally binding elements of the
contract.
Preliminary and Detail Design
• The production of plans and specifications usually proceeds into two
steps:

• Preliminary design – offers the owner a pause in which to review construction

before detail design commences
• Final or detail design – production of the plans and specifications
Preliminary Design
• Design team leader concept is utilized. Design team leader
coordinates the efforts of architects and engineers from differing
disciplines. The disciplines are: architectural, civil and structural,
mechanical, electrical and plumbing/ sanitary.
• Architect is responsible for the development of floorplans and general layout
drawings as well as considerations such as building cladding, exterior effects
and interior finish.
• Mechanical is concerned with HVAC. Decisions regarding size and location of
air conditioning and heating units are made.
• Electrical – decisions regarding electrical system
• Civil/ Structural – develop the preliminary design of the structural frame and
the subsurface foundation support.
• Plumbing/Sanitary – water supply system and drainage system.
Final or Detail Design
• Once the preliminary design has been approved by the owner, final or
detail design is accomplished. For the architect this focuses on the
interior finishes, which include walls, floors, ceilings and glazing.
• Precise locations and layout of electrical and mechanical systems as
well as the detail design of structural members and connections are
accomplished by the appropriate engineers.
• In addition to these detailed design documents, the
architect/engineer produces a final owner’s estimate indicating the
total job cost minus mark up. This estimate should achieve
approximately ±3% accuracy, since the total design is now available.
Final or Detail Design
• The owner’s estimate is used to:

• To ensure the design produced is within the owner’s financial resources to

construct.
• To establish a reference point in evaluating the bids submitted by the
competing contractors.

In some cases, when all contractor bids greatly exceed the owner’s estimate, all
bids are rejected and the project is withdrawn for redesign and reconsideration.
Once detailed design is completed, the owner again approves the design prior
to advertising the project to prospective bidders.
Notice to Bidders
• The document announcing to prospective bidders that the design
documents are available for consideration and that the owner is
ready to receive bids.
• The architect/engineer wants to be sure that the lowest bid price is
achieved. To ensure this, the job is advertised to those contractors
who are capable of completing the work at a reasonable price.
• The notice to bidders contains information regarding the general type
and size of the project, the availability of plans and specifications for
review and the time , place and date of the bid opening.
Notice to Bidders
• Normally, set of plans and specifications for review are available
electronically for perusal at online plan rooms.
• They may also avail the said bidding documents from the
owner/client/ client’s architect/engineer/government/ company
itself.
PhilGEPS
• To make procurement processes more efficient the government has
established Philippine Government Electronic Procurement System
• An online portal where government agencies post their procurement
requirements.
Bid Package
• The documents that are available to the contractor and on which he
must make a decision to bid or not to bid are those in the bid
package.
• In addition to the plans and technical specifications, the bid package
prepared by the design professional consists of a proposal form,
general conditions that cover procedures common to all construction
contracts and special conditions, which pertain to procedures to be
used that are unique to a given project.
Bid Package
Proposal Form
• Designed and laid out by the architect/engineer is the document that,
when completed and submitted by the contractor, indicates the
contractor’s desire to perform the work and the price at which he or
she will construct the project.
• The proposal form when completed and submitted established intent
on the part of the contractor to enter into a contract to complete the
work specified at the price indicated in the proposal.
• It is an offer not a formal contract.
• If however the owner responds by awarding the contract based on
the proposal, an acceptance of the offer results and a contractual
relationship is established. The prices at which the work will be
constructed can be stated either as lump-sum or as a unit-price
figures.
• In the proposal form, the contract duration is also specified, although
this is not always the case. In many instances, the project duration is
specified in special condition portions.
• This proposal form indicates also that the contractor is to begin to
work within 10 calendar days after the receipt of written notice of
award of contract.
• Award of contract is usually communicated to the contractor in the
form of a notice to proceed (NTP).
General Conditions
• Certain stipulations regarding how a contract is to be administered
and the relationships between the parties involved are often the
same for all contracts.
• An organization that enters into a large number of contracts each
year normally evolves a standard set of stipulations that establishes
these procedures and applies them to all construction contracts.
• These set of provisions is normally referred to as the general
conditions.
Special Conditions
• Those aspect of the contractual relationship that are peculiar or
unique to a given project.
• Items such as duration of project, additional instructions regarding
commencement of work, owner-procured materials, mandatory wage
rates characteristics of the local area, format required for project
progress reporting and amount of liquidated damages.
Technical Specifications
• A verbal description of the technical requirements.
• These provisions pertain in to large part to the establishment of
quality levels. Standards of workmanship and material standards are
defined in the specifications.
• For material and equipment, this is often done by citing a specific
brand name and model number as the desired item for installation.
• Often the quality required will be established by reference to an
accepted practice or quality specification.
Technical Specifications
• The American Concrete Institute (ACI), American Association of State
Highway and Transportation (AASHTO), and American Society for
Testing Materials (ASTM) published recognized specifications and
guides.
• A typical index of specifications for a heavy construction project might
appear as follows:
• Clearing and grubbing
Technical Specifications
• A typical index of specifications • Metal work fabrication
for a heavy construction project • Water supply facilities
might appear as follows: • Painting
• Clearing and grubbing • seeding
• Removal of existing structures
• Excavation and fill
• Sheet steel piling
• Stone protection
• Concrete
• Miscellaneous item of work
Addenda
• Any changes in detail, additions, corrections and contract conditions
that arise before bids are opened that are intended to become part of
the bid package and the basis of the bidding.
• An addendum thus becomes part of the contract documents and
provides the vehicle for the owner to modify the scope and detail of a
contract before it is finalized.
• Once a contract has been signed future changes in the scope or
details of a contract may for the basis for a new financial relationship
between contracting parties. The original contract, in such cases, can
no longer be accepted as forming the basis for a full description of the
project. Such changes are referred to as change orders.
Estimate and the Decision to Bid
• After investigating the plans and specifications, the contractor must
make a major decision as to whether or not to bid the job.
• Estimating – is the process of looking into the future and trying to
predict project costs and various requirements.
• The quantities of materials must be developed from the drawings by
an expert. The process of determining the required material
quantities on a job is referred to as quantity take off or quantity
surveying.
Prequalification
• In some cases the complexity of the work dictates that the owner
must be certain that the selected contractor is capable of performing
the work described. Therefore, before considering a bid, owner may
decide to prequalify all bidders. This is announced in the instructions
to bidders.
• Each contractor interested in preparing and submitting bid is asked to
submit documents that establish his firm’s expertise and capability in
accomplishing similar types of construction. If the owner has doubts
regarding the contactor’s ability to successfully complete the work,
the owner can simply withhold qualification.
Subcontractor and Vendor Quotations/
Contracts
• For specialty area such as electrical work, interior finish and roofing
the prime contractor solicits quotations from subcontractors with
whom he or she has successfully worked in the past.
• The contractor integrates these quotations into the total bid price.
• Following the award of the contract, the prime contractor has his
purchasing or procurement group move immediately to establish
subcontracts with the appropriate specialty firms.
Bid Bond
• Various defaults are possible in the relationship between owner and
contractor. The concept of a bond allows one party to protect itself
against default in a relationship with a second party.
• A third party, also known as surety, provides protection such that, if a
default between two parties occurs that results in damage, the surety
protects the damaged party.
• This protection is typically in the form of offsetting or covering the
damage involved.
• Bid bond is issued as part of supply bidding process by the contractor
to the project owner, that the winning bidder will undertake the
contract under the terms at which they bid.
Bid Bond
• A construction bond involves
a relationship between three
parties- the principal or party
who might default, the oblige
or party who may be
damaged or lose some
advantage, and the surety
who will offset the damage or
loss of advantage.
Bid Bond
• During the bidding process, the owner usually requires a bid
security. The security is required to offset the harm or damage
occurring in the event that the firm selected fails to begin the
project as directed.
• The importance of the bid bond is not the fee paid by the
contractor for its insurance, but instead its implication that if the
contract is awarded, the surety will issue performance and
payment bonds.
• Performance bond protects the owner against default on the
contractor’s part in completing the project in accordance with
the contract documents
• Payment bond protects the owner against failure on the part of
the prime contractor to pay all subcontractors or vendors having
outstanding charges against the project.
Performance and Payment Bonds
• Performance bond is issued to a contractor to guarantee the owner
that the contract work will be completed and that it will comply with
project specifications.
• A performance bond protects the owner against default on the part
of the contractor in performing the projects as required.
• Payment bond is issued to guarantee the owner protection against
any liens or charges against the project that are unpaid as a result of
contractor’s default.