Republic of the Philippines

SURIGAO DEL NORTE STATE UNIVERSITY

Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
Name: John Wayne Atig Date: January 29, 2023
Course: BSCE 4A CLAVER Subject: Construction Methods and Project Management
Module 1
PRETEST: Answer the following.

1. Why is it essential that a project manager fully understand the requirements and procedures
specified in the contract?

A project manager must fully understand the requirements and procedures specified in the
contract in order to ensure that the project is completed on time, within budget, and to the
satisfaction of all parties involved. This includes ensuring that the project team is aware of and
adheres to all contractual obligations, managing any changes to the project scope or schedule,
and addressing any disputes or issues that may arise. Additionally, a thorough understanding of
the contract can help the project manager identify potential risks and develop strategies to
mitigate them. Overall, effectively managing the contract is essential to the successful completion
of the project.

2. Name and describe the types of technical specifications.

There three different types of construction specifications found in contracts are:

1. Prescriptive specifications – provide step by step details and instructions on how the types
of materials to be used and the desired installation methods.
2. Performance specifications will provide all of the operations requirement to complete a
project.
3. Proprietary specifications are the rarest of the breed. They are usde when a specific type
of product or material is required for installation. Typically, this type of specs are used
when doing renovations to an existing structure, and the client needs to match the
improvements to the completed portion.

3. What is the difference between a contract addenda and a contract change order?

A contract addenda and a contract change order are both documents that are used to modify
or update a contract, but they are used for different purposes. A contract addenda is a document
that is added to an existing contract to provide additional information or to clarify or modify certain
provisions of the contract. It is typically used to address issues that were not covered in the
original contract or to provide more detail on certain aspects of the project. A contract addendum
is considered a part of the original contract and is legally binding. A contract change order, on the
other hand, is a document that is used to make changes to the scope, schedule, or cost of a
project. It is typically used to add or remove work items or to make changes to the timeline or
budget of the project. A contract change order is a separate document from the original contract
and must be signed by both the owner and the contractor to be legally binding. In summary, a
contract addenda modifies or clarifies the original contract, while a contract change order
modifies the scope, schedule, or cost of the project.

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
4. What are five potential risks that a contractor might face on a construction project?

1. Cost Overruns: One of the most common risks that contractors face on construction
projects is the risk of cost overruns. This can occur when unexpected costs are incurred,
such as due to changes in the scope of the project, delays, or unforeseen site conditions.
2. Schedule Delays: Another risk that contractors face is the risk of schedule delays. This
can occur due to a variety of factors, such as weather, labor shortages, or delays in
obtaining necessary permits or approvals.
3. Safety Incidents: Safety is a major concern on construction sites, and contractors face the
risk of accidents and injuries to workers and others. This can result in costly workers
compensation claims, as well as damage to the contractor's reputation.
4. Disputes and Litigation: Construction projects often involve multiple parties and can be
complex, which can lead to disputes and disagreements between the contractor, owner,
and other stakeholders. This can result in costly and time-consuming litigation.
5. Loss of Bond or Insurance: Many construction projects require contractors to provide a
performance bond or insurance as a guarantee of their ability to complete the work.
Contractors may face the risk of losing these bonds or insurance if they fail to meet the
terms of the contract or if claims are made against them.

It's important for the contractor to have proper risk management plan in place to identify and
mitigate potential risks, and to have insurance and bonds to cover the potential cost of those
risks in case they happen.

Activity 1: Provide at least five topics addressed (or examples of requirements) in each of
the five contract documents.
General Special Technical
Agreement Drawings
Conditions Conditions Specifications
RCP(Reflected
Ceiling
Insurance Inspections Equipment and Plan)and MEP
Workmanship
Requirements and Testing Materials (Mechanical,
Electrical,
Plumbing)
Performance
Change Orders Site Specific Testing and Building
and Payment
and Claims Requirements Inspection Sections
Bonds
Subcontractor
Permits and Performance
Scope of Work and Supplier Elevations
Approvals Standards
Management
Owner
Payment Safety and Quality Control
Furnished Floor Plans
Terms Compliance and Assurance
Items
Warranty and Site Access Warranty and Sustainable
Site Plan
Maintenance and Security Maintenance Construction

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(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater

Activity 2: Provide examples each of the four types of bonds.

Bid Bond Performance Bond Labor and Material Maintenance Bond

Payment Bond
A construction A construction A construction A construction
company, Charlz company, Charlz company, Charlz company, Charlz
Construction, is bidding Construction, has been Construction, has been Construction, has
on a project to build a awarded a contract to awarded a contract to completed a project to
new city hall for a construct a new hospital construct a new build a new shopping
municipality. As part of for a state. As part of apartment building for a mall for a developer. As
their bid, they are the contract, Charlz developer. As part of part of the contract,
required to submit a bid Construction is required the contract, Charlz Charlz Construction is
bond to the to provide a Construction is required required to provide a
municipality. The bid performance bond to to provide a payment maintenance bond to
bond guarantees that if the state. The bond to the developer. the developer. The
Charlz Construction is performance bond The payment bond maintenance bond
awarded the contract, guarantees that Charlz guarantees that Charlz guarantees that Charlz
they will enter into the Construction will Construction will pay all Construction will
contract and provide the complete the subcontractors, maintain the completed
required performance construction of the suppliers, and laborers shopping mall for a
and payment bonds. If hospital according to for the work they period of 1 year. The
Charlz Construction is the terms of the perform on the project. bond ensures that the
awarded the contract, contract and the The bond ensures that contractor will take care
but fails to enter into the approved plans and all parties will get their of any defect,
contract or provide the specifications. If Charlz due payments on time malfunction or damage
required bonds, the Construction fails to and in case of any that may occur during
municipality can use the complete the default by the the specified period. If
bid bond to cover the construction, is unable contractor, the bond will Charlz Construction
cost of re-bidding the to perform the work as cover the cost of paying fails to perform the
project. per the contract, or them. If Charlz required maintenance
defaults on the contract, Construction fails to pay or if any defect occurs,
the state can use the these parties, the the developer can use
performance bond to developer can use the the maintenance bond
cover the cost of payment bond to cover to cover the cost of
completing the the cost of paying them. performing the
construction. maintenance and
rectifying the defects.

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater

SELF-EVALUATION
1. Identify the following as Agreement, General Conditions, Special Conditions, Technical
Specifications, and Drawings:

a. Changes in contract scope of work - Agreement

b. Location for parking for contractor’s employees General Conditions
c. Description of the project to be constructed Special Conditions
d. Resolution of disputes- Agreement
e. Uncovering defects and correction of work General Conditions
f. Required insurance coverage limit Technical Specifications
g. Site security requirements - General Conditions
h. Structural drawings -Drawings
i. Room finish, light fixtures, and plumbing fixtures schedules Drawings
j. ASTM as reference standard Technical Specifications
k. Functional criteria for acceptable materials or products Technical Specifications
l. Contract close-out procedures- Agreement
m. Permission requirements for night or weekend work Special Conditions
n. Warranty of work - Special Conditions
o. Geotechnical evaluation of the project - Special Conditions

2. Give examples of a lump sum contract, a unit price contract, a cost-plus contract and cost plus
with guaranteed maximum price.

Lump Sum Contract: A a general contractor is hired to construct a new office building for a fixed
price of $10 million. The contractor is responsible for all costs associated with the project,
including materials, labor, and equipment.

Unit Price Contract: A landscaping company is hired to install a new irrigation system for a
housing development. The company provides the owner with a unit price for each linear foot of
pipe installed, and the owner pays the company based on the actual number of linear feet
installed.

Cost Plus Contract: A general contractor is hired to construct a new hotel for a cost plus 15%
fee. The contractor is responsible for all costs associated with the project, including materials,
labor, and equipment, and the owner agrees to pay the contractor an additional 15% fee on top
of the direct costs.

Cost Plus with Guaranteed Maximum Price: A general contractor is hired to construct a new
school for a cost plus 10% fee and a guaranteed maximum price of $12 million. The contractor is
responsible for all costs associated with the project, including materials, labor, and equipment,
and the owner agrees to pay the contractor an additional 10% fee on top of the direct costs, but
the total cost of the project will not exceed $12 million.

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
POSTTEST: Encircle the letter that corresponds to your best answer in every item.
1. What is construction contract?
a. An exchange of promises between two or more parties to do, or refrain from doing an
act, which resulting contract is enforceable in a court of law
b. Exchange of money in return for construction material and building services.
c. A legal agreement document between two parties that binds the contractor to do the job
with the specified requirements and the client to pay for it.
d. Buying from external organizations and 3rd parties to start construction project

2. Which type of contracts not used in construction?

a. Design build b. Lump-sum contract
c. Unit price contract d. Express and implied contracts

3. The total cost of work in Unit Price Contract can be calculated

a. After the sign of contract b. After the completion of work
c. Before the sign of contract d. Before the completion of work

4. Advantages of unit price contracts

a. Tenderers prices are exactly the same basis
b. Avoid a lot of detailed accounting and measurement
c. Owner does know the exact cost of work
d. Project scope and limits are defined prior to the start of construction

5. Which is not of disadvantage of lump-sum contract?

a. Plans and specifications must be detailed
b. The lack of time flexibility in this method may result in delayed project
c. Highly skilled Architect or Engineers is needed
d. Plans and specifications do not need to be completed in detail

6. Total cost of Cost Plus Fixed Fee contract (CPFF) is

a. Total cost = cost for the work x fixed fee
b. Total cost = cost for the work + percentage of cost
c. Total cost = cost for the work + fixed fee
d. Total cost = cost for the work x percentage of cost

7. In cost plus incentive fee contract, the compensation is based on contracting performance
according to
a. Budget b. Quality
c. Scheduled d. Budget, schedule and quality

8. Which of the following is an advantage of cost plus contract?

a. They allow focus to shift from the overall cost on the quality of work being done
b. They may lead to a longer timeline for the project.
c. They may leave the final cost since they can’t be predetermined
d. The all-risk on the contractor

9. Which is true about guaranteed maximum price contract?

a. The contractor agrees to perform work up a price ceiling
b. This method gives greater flexibility for contractor
c. The contractor agrees to perform work within a price ceiling
d. None of these
Tel. Nos.: (086) 827-3741; Email: [email protected]
(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
10. In which of the following stages contract documents are prepared?
a. Planning stage b. Briefing stage
c. Construction stage d. None of the above

11. In which of the following stages specifications are prepared?

a. Planning stage b. Briefing stage
c. Construction stage d. None of the above

12. Which of the following is not role of contractor?

a. To arrange land for construction b. To provide resources as per condition of contract
c. To work as per plans and specifications d. To put RA and final bill and bill for extra item

13. Which of the following is not role of owner?

a. to arrange land b. to arrange fund
c. to ensure quality of construction d. to arrange necessary approvals

14. Which of the following contract type is usually preferred in railway construction purposes?
a. Lump sum b. Percentage rate c.
Item rate d. Piece work

15. In the negotiated contract, the owner cannot negotiate with the contract including method
of payment for the work, bid, etc.
a. True b. False
c. Maybe d. In some aspect

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
Module 2
PRETEST: Answer the following items.

1. Articulate the importance of construction project organization .

Meet project goals and deadlines: By establishing clear roles, responsibilities, and
schedules, a well-organized construction project can help to ensure that all tasks are
completed on time and within budget.
Improve communication: Effective communication is critical to the success of any
construction project. An organized construction project can help to improve
communication by establishing clear lines of communication between team members and
stakeholders.
Reduce risks and increase safety: Construction projects come with a range of risks and
hazards, such as health and safety risks, financial risks, and environmental risks. A well-
organized construction project can help to mitigate these risks by ensuring that safety
procedures are in place and that everyone involved in the project is aware of them.
Increase efficiency: An organized construction project can help to reduce waste,
minimize delays, and increase productivity. This can result in lower costs and a more
successful outcome for the project.

2. Discuss the levels of the WBS (Work Breakdown Structure)

The levels of the WBS typically include:

Level 1: This is the highest level of the WBS and represents the overall project. It is a
broad, high-level description of the project's objectives and outcomes.
Level 2: This level represents the major components or deliverables of the project. Each
level 2 component should be a smaller, more defined piece of the overall project.
Level 3: This level further decomposes the level 2 components into smaller, more
manageable tasks or subtasks.
Level 4 (optional): This level provides additional detail and decomposes the level 3 tasks
into even smaller components. This level may be used for complex projects or to provide
additional clarity.
The number of levels in a WBS may vary depending on the size and complexity of the
project, but the basic structure remains the same. By breaking down the project into
smaller components, the WBS helps to ensure that all aspects of the project are well
defined, understood, and manageable.

3. Describe the characteristics of an effective construction project manager.

Leadership: An effective construction project manager must possess strong leadership

skills and be able to motivate and manage a team of workers, subcontractors, and other
stakeholders.
Communication: A construction project manager must be able to effectively
communicate with all stakeholders involved in the project, including team members,
clients, and regulatory agencies.
Planning and organization: An effective construction project manager must be able to
plan and organize the project, including developing schedules, setting budgets, and
managing resources.
Problem solving: Construction projects often encounter unexpected challenges and
obstacles. An effective construction project manager must be able to identify and resolve
problems in a timely and effective manner.

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(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
Technical knowledge: A construction project manager should have a thorough
understanding of construction processes, materials, and regulations, as well as a good
understanding of project management principles and techniques.
Flexibility: Construction projects are subject to changes, and an effective construction
project manager must be able to adapt to new situations and make decisions quickly.
Attention to detail: An effective construction project manager must be detail-oriented and
ensure that all aspects of the project are managed accurately and efficiently.

4. Provide example of an organizational structure of a construction project.

Project Manager: The project manager is responsible for the overall management and
coordination of the construction project. They set project goals, oversee the budget and
schedule, and make decisions related to resources and personnel.
Project Engineer: The project engineer is responsible for ensuring that the project is
engineered and executed in accordance with the design, specification, and codes. They
work closely with the project manager and contractors to ensure that the construction
process runs smoothly.
Site Manager: The site manager is responsible for managing the day-to-day activities on
the construction site, including overseeing workers, managing the supply chain, and
ensuring that the project stays on track.
Safety Manager: The safety manager is responsible for ensuring that all safety
procedures and regulations are followed on the construction site. They work closely with
the site manager to ensure that all workers are safe and that the project is completed
without incident.
Quantity Surveyor: The quantity surveyor is responsible for managing the project's
budget and ensuring that costs are kept under control. They work with the project
manager to develop a budget and track spending throughout the project.
Architect: The architect is responsible for the design of the building and ensuring that it
meets all building codes and regulations. They work with the project engineer to ensure
that the design is feasible and that the construction process aligns with the design.

SELF-EVALUATION (Briefly answer the following items.)

1. What is meant by project buyout?
Project buyout refers to the process of purchasing all of the materials and equipment
needed for a construction project. In a project buyout, the contractor, who is
responsible for the construction work, purchases all of the materials and equipment
directly from suppliers, rather than having the owner or client purchase the materials
and then supply them to the contractor. The purpose of a project buyout is to
streamline the procurement process and reduce costs by eliminating the need for
multiple parties to be involved in the purchasing process. Additionally, the contractor
may be able to negotiate better pricing for materials and equipment directly with
suppliers, which can also help to reduce costs for the project. However, a project
buyout also carries some risk, as the contractor is responsible for ensuring that the
materials and equipment are delivered on time and meet the required quality
standards.

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater

2. What are three factors that should be considered when planning the organization of a
jobsite?
Safety: Safety should always be a top priority when organizing a jobsite. The layout of
the site and the placement of equipment and materials should be designed to minimize
potential safety hazards, and clear procedures and protocols should be established to
ensure that workers and other personnel are protected from harm.

Logistics: The logistics of a jobsite, including the delivery of materials and equipment,
the management of waste, and the movement of personnel and vehicles, should be
carefully planned to minimize disruptions and ensure that work can proceed smoothly
and efficiently.

Communication: Effective communication is critical for the success of a construction

project. The organization of a jobsite should be designed to facilitate communication
between all stakeholders, including workers, supervisors, subcontractors, and clients,
to ensure that everyone is on the same page and that information is shared effectively.

3. Compare and contrast the traditional architect/engineer and the design/build

organizational structures used to manage construction projects.

In the traditional A/E structure, the owner hires an architect to design the building and an
engineer to design the mechanical, electrical, and plumbing (MEP) systems. The
contractor is then hired to construct the building based on the design provided by the
architect and engineer. In this structure, the owner has separate contracts with each of the
architect, engineer, and contractor, and the three parties work independently of each
other, with limited collaboration.
In the design/build structure, the owner hires a single entity, known as the design/builder,
to provide both the design and construction services for the project. The design/builder is
responsible for coordinating the design and construction phases of the project, and for
ensuring that the building is constructed in accordance with the design. This structure
allows for more collaboration between the design and construction teams, as they are
working together under the same contract.
There are pros and cons to both approaches. The traditional A/E structure provides the
owner with greater control over the design process and a clearer separation between the
design and construction phases of the project. However, it can lead to a lack of
collaboration between the different parties, which can result in problems and delays during
the construction phase.
The design/build structure, on the other hand, allows for greater collaboration between the
design and construction teams and can result in a more efficient and streamlined
construction process. However, it can also lead to less control for the owner over the
design process, and it may be more difficult for the owner to hold the design/builder
accountable for any problems that arise during the construction phase.
In conclusion, the choice between the traditional A/E and design/build structures will
depend on the specific needs and preferences of the owner and the characteristics of the
construction project.

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(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
5. Briefly describe the primary responsibilities of the key participants in a construction
project.
Owner/Client: The owner or client is responsible for defining the scope of the project,
setting the budget, and making decisions about the design and construction process. The
owner is also responsible for ensuring that the project is completed on time, within budget,
and to the required quality standards.
Architect: The architect is responsible for the design of the building, including the layout,
exterior and interior finishes, and MEP systems. The architect also provides technical
drawings and specifications, and may work with engineers to ensure that the design is
feasible and meets all relevant building codes and standards.
Engineer: The engineer is responsible for the design of the MEP systems, including
electrical, mechanical, and plumbing systems. The engineer works with the architect and
other engineers to ensure that the systems are properly integrated into the overall design
of the building.
Contractor: The contractor is responsible for the construction of the building, including all
of the labor, materials, and equipment required. The contractor works with the owner,
architect, and engineer to ensure that the building is constructed in accordance with the
design and specifications.
Project Manager: The project manager is responsible for overseeing the entire
construction process, from planning and design through to construction and completion.
The project manager works with all of the key participants to ensure that the project is
completed on time, within budget, and to the required quality standards .

POSTTEST. Encircle the letter that corresponds to your best answer.

1. What is organization?
a. Arrangement of persons in business b. Arrangement of machines on site
c. Arrangement of money for business d. Arrangement of materials at site

2. What is span management?

a. It is the number of persons to be supervised by a manager
b. It is the number of years for management to remain active
c. It is the average age of manager in business
d. It is the number of achievements of management

3. What is the simplest and oldest type of organization?

a. Matrix organization b. Line or military organization
c. Line and staff organization d. Functional organization

4. Which of the following is not a characteristic of a good organization?

a. It must have an organizational goal b. It should have proper structure
c. It should be as big as possible d. It should include all the activities without repeatation

5. What organization permits quick decision?

a. Matrix organization b. Line or military organization
c. Line and staff organization d. Functional organization

6. In which of the following organization expert advice is available?

a. Matrix organization b. Line or military organization
c. Line and staff organization d. Functional organization

Tel. Nos.: (086) 827-3741; Email: [email protected]

(086) 827-3742 URL: snsu.edu.ph
 Republic of the Philippines
SURIGAO DEL NORTE STATE UNIVERSITY
Narciso Street, Surigao City 8400, Philippines
“For Nation’s Greater
7. What should be conducted if there is evidence of discrepancies on the actual elevation from
those shown in plan?
a. Pre-construction survey b. Parcellary survey
c. Geotechnical survey d. Boring test

8. If a project is abandoned by the contractor due to peace and order problems, what
recommendation should immediately be submitted?
a. Rescission of contract b. Termination of contract
c. Contract suspension d. Blacklisting of contractor

9. What kind of reports are used to document events that occur at a plant or operation, such as
concrete batch plant or bituminous plant?
a. Contract performance report b. General project status report
c. Field correction report d. Plant inspector’s report
10.What kind of report are used to summarize the work progress for the immediately preceding
month or quarterly. Usually contains a narrative section describing status of project, S-curve
diagram, summary of contract time and change orders?
a. Contract performance report b. General project status report
c. Field correction report d. Plant inspector’s report

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