The Construction Project › Design-Build companies

Characteristics
Phases of the Project › Large-scale with high degree of technological
1. Project Initiation Phase complexity › Capital intensive and long construction
› conceptual planning periods
› feasibility studies
› design development 4. Infrastructure and Heavy Construction
› appointing the project team › includes highways, bridges, tunnels, airports,
harbors, transmission lines, STPs, irrigation, drainage
2. Project Planning Phase & flood control systems
› Formal project plan (blue prints, resource plans, Design & Construction
financial plans, etc) › In-House Designers
› Contract documents and bids › Specialty Contractors
› This phase sometimes overlaps with the initiation Characteristics
phase › Large-scale with high degree of mechanization ›
Long construction periods
3. Project Execution Phase
› Building the deliverables and controlling project
delivery, scope, cost, time, etc. Infrastructure Financing
› This is the stage where the bulk of the owner’s fund Build and Transfer
will be spent An arrangement whereby the project proponent ›
› It is the outcome of the previous stages undertakes the financing and construction of an
infrastructure facility
4. Project Close Out Phase › turns the facility to the government agency after
› Transition from construction to actual use of the completion
project › is paid by the government agency on an agreed
› Provides documentation, as-built drawings, schedule for the total investment plus rate of return
operation manuals
Usually applies to small to medium projects in which
Major Types of Construction Projects budget can be allocated in the near term
1. Residential Housing Construction › schools
› includes houses, townhouses, high-rise apartments › city and municipal halls
and subdivisions › buildings for government services (LTO, PAG-IBIG,
Design & Construction etc)
› Architects and Engineers
› Contractors (Formal and Informal)
Characteristics Infrastructure Financing
› Highly competitive Build-Operate-Transfer
› High risk and reward An arrangement whereby the project proponent ›
undertakes the financing and construction of an
2. Institutional and Commercial Building infrastructure facility
Construction › operates the facility over a fixed term during which
› includes schools, hospitals, government buildings, they are allowed to charge facility users to recover
sports facilities, shopping malls, skyscrapers for investment › transfers the facility to government
offices & hotels agency at the end of the fixed term
Design & Construction The most common financing scheme for government
› Specialty Architects and Engineers projects since most infrastructures can be used by the
› Contractors and Subcontractors paying public
Characteristics › roads
› Greater cost and sophistication than in residential › › mass transportation
Projects may be limited to few contractors › power plants

3. Specialized Industrial Construction

› includes oil refineries, steel mills, chemical
processing plants, power plants
Design & Construction
Infrastructure Financing
Build-Lease-Transfer
An arrangement whereby the project proponent ›
undertakes the financing and construction of an
infrastructure facility
› leases the facility to the government for a fixed
period to recover investment
› transfers the facility to government agency at the end
of the fixed term
Very common to government facilities that serve “free
services”
› public parks and recreations
› schools
› government hospitals

Legal and Regulatory Requirements

Various legislations and regulations aimed at
promoting public safety and welfare
Building Codes
Provides minimum design and construction standard
for architectural, structural and MEPF works
› NSCP
› Fire Code
› NBCP

DAO 13
› Personal Protective Equipment (PPE)
› Safety-trained personnel
› Emergency occupational health personnel and
facilities › Construction signage

Zoning Regulation
› controls land use
› limits the size, type and density of structures that may
be erected at a particular location
› typical classification: residential, commercial,
industrial, recreational, agricultural

Environmental Regulation
› protects the public and the environment by
controlling: water usage, vehicular traffic, waste
disposal, beach/wetland preservation, etc.
› requires preparation and approval of Environmental
Impact Assessment (EIA)

Contractor Licensing Laws

Contractors in the Philippines must be accredited with
the Philippine Contractors Accreditation Board
(PCAB) before they are allowed to participate in the
bidding of infrastructure projects
What is a Project Management? different organizations handling design and
construction
Project management is the application of • traditional sequence of design and
knowledge, skills, tools, and techniques to project construction
activities to meet the requirements of the project. • professional construction management
Project management is accomplished through the 2. Integration of organization
use of processes such as: initiating, planning, • single or joint venture undertakes both the
executing, controlling and closing. design and construction
Project Management Knowledge Areas • owner-builder operation
1. Scope • turnkey operation
2. Time
3. Cost Separation of Organization
4. Human resource 1. Traditional Design-Construction Sequence
5. Procurement • Selection of gencon is either through
6. Integration bidding or negotiation
7. Quality • This is the automatic arrangement for
8. Risk public projects since detailed plans must be
9. Communications completed first before project is bid out
10. Stakeholders • Gencon selects subcontractors also either
by bidding or negotiation
What is a Program? • Unattractive for projects where “time is of
A program is a group of projects managed in a the essence”
coordinated way to obtain benefits not available
• Example:
from managing them individually.
1. Public works projects
2. Small to medium construction (e.g.
What is a Subproject?
apartment construction in Los Baños
Projects are frequently divided into more
vicinity)
manageable components or subprojects.
2. Professional Construction Management
Subprojects are often contracted to an external
• Works with Owner and A/E firm and make
enterprise or another functional unit in an
recommendations on design improvement
organization.
and construction technology
• Subprojects based on the project process,
• Propose design and construction
such as Phase 1, Phase 2.
alternatives
• Subprojects according to human resource
• Monitors construction
skill requirement, such as plumbing,
• Coordinates procurement of material and
electrical works, etc.
equipment and work of all contractors
• Subprojects involving technology, such as
• Used in very large and complex projects
pile driving, post-tensioning.
• Example:
1. Private commercial construction
Project Organization (e.g. SM Malls, Ayala Malls,
1. Separation of organization Condominium towers)
• numerous organizations serve as 2. Clients/Owners who have regular
consultant, contractors to the owner, with projects
Integration of Organization 3. Negotiating
1. Owner-Builder Operation Negotiating involves conferring with others to
• Owner maintains an in-house team of come to terms with them or reach an agreement.
personnel that undertakes all tasks Project staff is likely to negotiate any or all of the
including planning, design and construction following:
• Owner has maximum control over design • scope, cost, and schedule objectives
and construction • changes to scope, cost and schedule
• Viable only when owner has a steady flow • contract terms and conditions
of on-going projects • assignments
• Example: • resources
1. Small commercial projects such as 4. Problem solving
mall tenants (e.g. havaianas, Problem solving involves a combination of
starbucks) problem definition and decision-making.
2. Turnkey Operation • Problem definition requires distinguishing
• Owner delegates all responsibilities of between cause and symptom
design and construction to outside • Decision making includes analyzing the
contractor problem to identify viable solutions, and
• Contractor delivers the completed facility then making a choice among them
on the basis of performance specifications 5. Influencing the organization
set forth by the owner Influencing the organization involves the
• Example: ability to “get things done.” It also requires the
1. Industrial park locators (usually understanding of the mechanics
foreign investors) setting up of power and politics.
operations in the Philippines
(Littelfuse – Trans Asia) Project Management Process Groups

Key Project Management Skills 1. Initiating - Authorizing the project of phase

1. Leading
Managing is primarily concerned with 2. Planning - Defining and refining objectives and
“consistently producing key results expected by selecting the best of the alternative courses of
stakeholders,” while leading involves: action to attain the objectives that the project was
• establishing direction undertaken to address
• aligning people
• motivating and inspiring
3. Executing - Coordinating people and other
2. Communicating
resources to carry out the plan
Communicating involves the exchange of
communication
• sender-receiver model 4. Controlling - Ensuring that the project objectives
• choice of media are met by monitoring and measuring progress
• writing style regularly to identify variances from plan so that
• presentation techniques corrective action can be taken when necessary
• meeting management principles
5. Closing - Formalizing acceptance of the project
or phase and bringing it to an orderly end
Project Management 3. Project Time Management includes the
processes required to ensure timely
Knowledge Areas completion of the project
i. Activity Definition – identifying
1. Project Integration Management the specific activities that must
includes the processes required to ensure be performed to produce the
that various elements of the project are various project deliverables
properly coordinated ii. Activity Sequencing – identifying
i. Project Plan Development – and documenting interactivity
integrating and coordinating all dependencies
project plans to create a iii. Activity Duration Estimating –
consistent, coherent document estimating the number of work
ii. Project Plan Execution – carrying periods that will be needed to
out the plan by performing the complete individual activities
activities included therein iv. Schedule Development –
iii. Integrated Change Control – analyzing activity sequences,
coordinating changes across the activity durations, and resource
entire project requirements to create the
project schedule
2. Project Scope Management includes the v. Schedule Control – controlling
processes required to ensure that the changes to the project schedule
project includes all the work required, and
only the work required, to complete the 4. Project Cost Management includes the
project successfully processes required to ensure that the
i. Initiation – authorizing the project is completed within the approved
project or phase budget. It is concerned with the cost of
ii. Scope Planning – developing a resources needed to complete project
written scope statement as the activities.
basis for future project decisions i. Resource Planning – determining
iii. Scope Definition – subdividing what resources (people,
the major project deliverables equipment, materials) and what
into smaller, more manageable quantities of each should be
components used to perform project
iv. Scope Verification – formalizing activities
acceptance of the project scope ii. Cost Estimating – developing an
by the stakeholders approximation (estimate) of the
v. Scope Change Control – cost of resources needed to
controlling changes to project complete project activities
scope iii. Cost Budgeting – allocating the
overall cost estimate to
individual work activities
 iv. Cost Control – controlling enhance project
changes to project budget performance

5. Project Quality Management includes 7. Project Communications Management

the processes required to ensure that the includes the processes required to ensure
project will satisfy the needs for which it timely and appropriate generation,
was undertaken collection, dissemination, storage, and
i. Quality Planning – identifying ultimate disposition of project information
which quality standards are i. Communications Planning –
relevant to the project and determining the information and
determining how to satisfy them communications needs of the
ii. Quality Assurance – evaluating stakeholders: who needs what
overall project performance on a information, when they will need
regular basis to provide it, and how it will be given to
confidence that the project will them
satisfy the relevant quality ii. Information Distribution –
standards making needed information
iii. Quality Control – monitoring available to project stakeholders
specific project results to in a timely manner
determine if they comply with iii. Performance Reporting –
relevant quality standards and collecting and disseminating
identifying ways to eliminate performance information (status
causes of unsatisfactory reporting, progress
performance measurement, forecasting)
iv. Administrative Closure –
6. Project Human Resource generating, gathering, and
Management includes the processes disseminating information to
required to make the most effective use formalize a phase or project
of the people involved with the project completion
i. Organizational Planning –
identifying, documenting, 8. Project Risk Management is the
and assigning project roles, systematic process of identifying, analyzing,
responsibilities and reporting and responding to project risk. It includes
relationships maximizing the probability and
ii. Staff Acquisition – getting the consequences of positive events and
human resources needed minimizing the probability and
assigned to and working on consequences of adverse events to project
the project objectives
iii. Team Development –
developing individual and
group competencies to
Project risk is an uncertain event or ii. Solicitation Planning –
condition that, if it occurs, has a positive or documenting product
negative effect on the project objective. requirements and identifying
potential sources
i. Risk Management Planning – iii. Solicitation – obtaining
deciding how to approach and quotations, bids, or proposals,
plan the risk management iv. Source Selection – choosing from
activities for a project among potential sellers
ii. Risk Identification – determining v. Contract Administration –
which risks might affect the managing the relationship with
project and documenting their the seller
characteristics vi. Contract Closeout – completion
iii. Qualitative Risk Analysis – and settlement of the contract,
performing a qualitative analysis including resolution of any open
of risks and conditions to items
prioritize their effects for project
objectives 10. Project Stakeholder Management
iv. Quantitative Risk Analysis – includes the processes required to acquire
measuring the probability and goods and services, to attain project scope,
consequences of risks and from outside the performing organization
estimating their implications for i. Stakeholder Identification –
project objectives identifying everyone affected by
v. Risk Response Planning – the work or project outcomes
developing procedures and ii. Stakeholder Management
techniques to enhance Planning – deciding how you will
opportunities and reduce threats engage with the stakeholders
to the project’s objectives identified
vi. Risk Monitoring and Control – iii. Managing Stakeholder
monitoring residual risks, Engagement – communicating
identifying new risks, executing with stakeholders and ensuring
risk reduction plans, and appropriate engagement levels
evaluating their effectiveness iv. Stakeholder Engagement Control
throughout the project life cycle – monitoring relationship with
stakeholders and adjusting
9. Project Procurement Management communication as needed as
includes the processes required to acquire requirements change
goods and services, to attain project scope,
from outside the performing organization
i. Procurement Planning –
determining what to procure
and when
Aljhon Morana • It has major influence on the efficiency and
profitability of a construction operation.
THE PROJECT SITE
The Project Site is where the building structure is Activities Needing Equipment
being built. 1. Excavation
It should be a well-planned area that considers 2. Loading and Hauling
mobility and function of the construction process. 3. Lifting
The Project Manager decides the allocation of areas 4. Piling
in a project site. 5. Compaction and Grading
Site-based management can make significant 6. Pumps
improvements in the cost and time savings during the
construction process without involving a mass of LABOR PRODUCTIVITY
additional work. Productivity
• defined as the output per labor hour
THE PROJECT SITE • may be expressed in terms of:
General objectives that must be met in project site ▪ Functional units per unit time (m3/day, m2/day,
layout planning: units/day)
1. The site must be designed to maximize efficiency ▪ Cost per unit time (PHP/hr, PHP/day)
of operations in order
• To promote worker productivity Factors Affecting Job-Site Productivity
• To shorten project time 1. Labor Characteristics
• To reduce project cost 2. Productive Work Condition
2. The final plan must create a project with a good 3. Non-Productive Activities
work environment in order to attract and retain the
best personnel and thus contribute to better work Materials Management
quality and productivity Materials represent a major expense in construction.

THE PROJECT SITE Poor materials management can result in large and
Construction Site Layout involves: avoidable costs:
• Identifying, sizing, and placing temporary facilities • materials purchased early can tie up capital
⮚ Workers’ Barracks, Engineering Office, Admin allocation
Office, Clinic, Canteen, Guard House, Comfort • warehousing cost of materials purchased early
Rooms, Staff House • materials may deteriorate during storage and may
• Identifying staging areas be stolen
⮚ Rebar Staging Area, CHB Staging Area, Sand and • materials purchased late may delay certain activities
Gravel Staging Area, Soil Staging Area, Cement Silo,
Bodega Insuring a timely flow of material is an important
• Locating mobility points and transportation routes concern of project managers.
• Locating equipment setup
⮚ Crane, Pumpcrete, and other stationary equipment
Construction Estimates
Engr. Kimjay Lamar
THE PROJECT SITE
Common Problems
The cost of construction facility to the owner
• Material stacks wrongly placed
include:
• Plant and Equipment wrongly located
• Initial capital cost
•Inadequate space allowed
• Operation and maintenance cost
• Temporary facility wrongly located
Cost Engineering – area of engineering practice
CHAPTER 4 PRODUCTIVITY
where engineering judgment and experience are
Lecturer: Aljhon Morana
utilized in the application of scientific principles and
CONSTRUCTION EQUIPMENT
techniques to the problem of cost estimation, control
• The selection of the appropriate type and size of
and profitability
construction equipment often affects the required
Cost Estimate – establishes the baseline of the
amount of time and effort to finish a project.
project at different stages of development of the
project
Cost Estimation – one of the most important steps in o Detailed estimate – made when the scope of works
project management is clearly defined and essential features of facility are
– a complex process of collecting available and known
pertinent information about project scope, expected o Engineer’s estimate – based on completed plans
resource consumption, and future changes in and specifications and used by the owner to solicit
resource cost bids from contractors

Qualifications of cost estimator 2. Bid Estimate – used by the contractor for

• Extensive knowledge of construction submission to the owner either for bidding or
• Knowledge of construction materials & method • negotiation – consists of direct construction cost,
Knowledge of construction practices & contracts • job site and general overhead and profit margin, and
Ability to read & write construction documents • may be derived from:
Ability to sketch construction details o Subcontractor quotation – basis of cost estimate for
• Graphic & verbal communication tasks that are subcontracted by the gencon
• Strong background in business & economics • o Quantity takeoffs – estimate of materials and labor
Ability to visualize work items for tasks that will be performed by the gencon based
• Broad background in design & code requirements on plans provided by owner
o Construction procedures – assess the actual cost of
Types of Cost Estimate (general) construction considering actual procedure to be used
1. Conceptual or approximate estimate if the project is different from typical design
2. Detailed estimate
Classification is dependent on: 3. Control Estimate – used by the owner for
• available information planning long term finances
• extent of effort – used by the contractor for monitoring expenses
during construction
Conceptual estimate
• Used at the outset of the project when scope are in Methods of Cost Estimation
early stages of development 1. Simple Unit Cost
• Used to assess potential cost to determine 2. Labor, Materials and Equipment Cost
economic desirability 3. Allocation of Joint Cost
Quick techniques usually employed: 4. Estimate Based on Engineer’s List of Quantities 23
• Utilize one project parameter such as floor area,
length (roads & bridges), or output (barrels per day) Determining elements of cost
• Use historical cost information o Labor
o Materials
Detailed estimate o Equipment
• Estimates that are prepared after scope of works of Objective of estimator is to identify specific types of
project are clearly defined resources to be used, quantity of resource and the
• Requires effort in gathering information and cost of resource
forecasting cost
• Prepared for bid purposes or definitive budgeting • Labor Resource
Fairly accurate projections of construction costs • • Refers to various human craft or skill resources that
Used for decision making and commitment actually build the project
• Cost of labor:
Types of Cost Estimate (function) a) Identify skill to be used & determine hourly cost –
1. Design Estimate wage rate
2. Bid Estimate b) Estimate rate of work – labor productivity c)
3. Control Estimate Divide labor rate by productivity to determine labor
cost per physical unit of work
1. Design Estimate – used by the owner or design
professional during the planning and design stage Labor Resource
o Screening estimate – used before design and thus • Labor rate – total hourly expense for a particular
rely cost data of similar facilities built in the past craft or task
o Preliminary estimate – based on the conceptual – expressed in pesos per hour (dollars/hr)
design of the facility • Labor productivity – output per unit of labor input
– expressed in output per unit time
(e.g. m3/day)
Importance of Scheduling During Construction:
Equipment Cost • Enables preparation of checklist of key dates,
• Equipment may either be purchased or leased activities, resources, etc.
• Equipment selection criteria: • Provides means for evaluating the effect of changes
o Functional performance – capacity & speed o and delays
Project flexibility – multiple uses • Basis for evaluating progress
o Companywide operations – equipment can be used • Aids in coordination of resources
in other projects
o Economics – production or hourly cost Importance of Scheduling After Construction:
• Permits review and analysis of project that was
Equipment Cost carried out
• Equipment economics include: • Provides historical data for improving future
o Production rates – output per unit time planning and scheduling
o Equipment cost – includes direct and indirect
equipment cost Scheduling Principles
• Direct cost – cost of ownership and operation of • Establish logical sequence of operation
equipment • Do not exceed resource capacities
• Indirect cost – costs that occur in support of the • Provide for continuity of operation
overall fleet of the equipment but cannot be • Start project-controlling activities (critical
specifically assigned to a particular activities) early
equipment Forms of Schedule
• Written Schedule
Materials Estimate • Bar Graph
• Estimator must be able to read & interpret drawings • Network Schedules
& specs to develop a complete list of materials
required
• Estimator identifies the cost of materials including Bar Graph Method
purchase price, shipping, handling & taxes. • A graphical schedule relating progress of items to a
• Refer to Simplified Construction Estimates by Max work schedule
Fajardo • Devised by Henry Gantt (that’s why the name Gantt
chart)
CHAPTER 6 • Most widely used in construction due to graphic
PROJECT PLANNING AND SCHEDULING format and easy to understand
Lecturer: Aljhon Morana
• Simplicity
Schedule • Effective communication between engineer and
• A time-phased plan foreman
• Guide during the performance of an activity in order • Useful in identifying required resources
to control the pace of activities to permit completion
of the operation at the desired time. • Failure to show relationships between project
activities
Tasks in Construction Planning • Failure to identify activities which control the
• Definition of work tasks project duration (critical activities)
• Choice of technology and construction • Failure to show the effect of delay or change in one
methodology activity on the entire project
• Estimation of required resources
• Estimation of duration of individual tasks Activity on Nodes (AON)
• Identification of interactions among different tasks • This is a node network diagram that uses four (4)
types of relationships
Importance of Scheduling Before Construction: ▪ Finish-to-Start (FS)
• Provides an estimate of time required for each ▪ Start-to-Start (SS)
portion of the project as well as the total project ▪ Finish-to-Finish (FF)
• Establishes planned rate of progress ▪ Start-to-Finish (SF)
• Establishes planned sequence for the use of • Activity on Node is a graphical tool that shows a
personnel, materials, equipment and capital project’s activities as nodes connected by arrows
indicating their mutual dependencies or logical
relationships
• Activity Precedence Diagram

Activity on Nodes (AON)

Lags It assist in presenting at the Activity on Node
diagrams the situation when an activity will not start
until certain time after the end of another activity.
Negative Lags are called Lead.

Scheduling Procedure
Forward Pass
• This procedure determines the earliest dates at
which each construction task or activity can be
performed.
• It also determines the minimum duration of the
construction project.
Backward Pass
• This procedure computes the latest dates by which
each construction task or activity can be performed
without increasing the construction project’s
duration.

Critical Path
• All projects will have at least one critical path
• All critical activities belong to a critical path
• A delay in any critical activity will extend the
project duration
• The non-critical activities can be delayed at least 1
day without lengthening the project duration
• Saving time in any non-critical activity does not
decrease at all the project’s duration