CE 511 – CONSTRUCTION METHODS AND PROJECT MANAGEMENT

I. OVERVIEW
A. Categories of Construction Projects
 Residential
 Commercial
 Industrial
 Highway construction/ Heavy Construction (dams & levees, canals, bridges, railroads & tunnels)
B. Project Players

 Owners  Labor unions

 General contractor  Insurance companies
 Subcontractor/Specialty Contractor  Banks
 Designers  Suppliers
 Construction workers  Permitting agencies & Building
 Trades Authorities
 Public

C. Construction Labor Force

 Brick-, Block-, Stone-Masons  Glaziers

 Carpenters  Painters
 Cement Masons & Cement Finishes  Pipe layers, plumbers, pipe fitters &
 Construction Equipment Operators Steam fitters (& sprinkler fitters)
 Construction Laborers  Sheet metal workers
 Electricians  Structural & Reinforcing Iron- and
Metal

 Workers
D. Public and Private Works
 Public works: publicly funded construction
E. Organization of the Construction Business
 Owner – Architect (lead designer): Structural, Mechanical, Electrical Engineers, etc.
 – General Contractor: Specialty or Subcontractors
F. Project Delivery Systems
 Design – bid – build (commonly called low bid)
 Negotiated contracts (common in the private sectors)
 Design-Build
 Job order contracts
II. Construction management functions
A. Planning phase
 Project owner responsibility whose goals are always the same to produce a quality facility, within
budget, on time, safely.
 Quality is defined based on the satisfying needs of the owner.
 The owner must make financial arrangements prior to the award of a construction contract.
 No financial institution is involved if the owner has sufficient funds internally available in
funding the project.
 Normally, the owner will seek construction mortgage then later permanent mortgage.
 The owner must decide what delivery system is to be used.
 Designer selection
B. Design phase
 Primary requirement for any facility: SAFE.
 To ensure safety, local jurisdictions instituted building codes.
C. Bid Phase
 Two factors contractors consider in making the bid/no bid decision.
 Bonding capacity
 Policies of management
  The process of estimating their own work & collecting quotations from subcontractors begins.
Consider cost of equipment, labor, materials, subcontractors, job and company overhead
 Consider also competent bidders and the bidding history of the competitor’s similar projects.

Elements of Contractor’s Bid

COST CATEGORY
Direct Cost Materials
Labor
Equipment
Job Overhead
Subcontractors
Indirect Cost Corporate Overhead
Contingency
Profit
Bid Amount Sum of Direct and Indirect Cost

D. Award Phase
 Notice to proceed – document issued to the contractor after award of the contract. Formally
authorizes access to the site and establish the project start date
 Preplanning the details of how work will proceed and in what sequence.
 Cash flow analysis
E. Construction Phase
 On-site Project Management Organization
 Depending on the size and complexity of the project.
 Project Managers
a. managing critical activities (20% of all the activities; activities in the critical path)
b. 80% of all the activities are delegated to the staff.
F. Project Cost and Schedule Control
 Productivity – a measure of the progress of work of the contractor measured against a standard
such as the project schedule.
 Total Cost

Ct = Ch x T ; T = Q/R
Ct = Ch x Q/R ; where, Ch = Cost per hour; Q = total quality to be installed; R = production rate
 Cash Flow Analysis
 An S-Curve (budgeted cost of work schedule) can be used to predict project cash flow
requirement.
 Done by owner and contractors separately.
 Schedule control
 Computer advancement (PRIMAVERATM)
 Materials Management
 Just-in-time Procurement: procurement process for common items to guarantee delivery
within 24 hours, and thereby reduce the need for storage at the construction site.
 Risk Management (Minimize risks)
 Construction related risks
 Labor availability & labor productivity
 Economic risks (i.e. cost escalation)
 Political and public risks
 Weather
 Contractual and Legal risks
 Design risk
 Safety risks
 Construction vehicle accidents
--- the contractor and the owner share risks, question is who assumes which risks and how are
risks shared?
--- purchase insurance to manage risks.