TOPIC 1 Unforeseen Site Conditions-Discovering unexpected TOPIC 3
conditions at the construction site.
Bidding - a competitive process in which individuals or Cost Overruns- Among the top construction industry Organization – is a group of individuals who are companies submit problems is cost overrun. cooperating willingly and effectively for a common Poor Management- Poor project management leads to goal. Bidding and Tendering Process miscommunication. Construction Project Organization – involves planning, Poor Communication- One of the more everyday coordinating, and managing various aspects of a Bid Solicitation - providing a request or invitation for construction issues is inadequate communication. construction project to ensure that it is completed the bidders. Poor Forecasting- Some clients and stakeholders may successfully. Bid Preparation of Interest Parties - processing or make some big asks Structural Organization – The structural organization is submitting the bidding proposal to participate Lack of Skilled Labor- Without enough skilled workers, the formal arrangements that are established to Bid Evaluation and Selection - assessing and choosing contractors face many challenges coordinate all activities in order to implement a given proposals submitted by the bidders. Cash Flow Issues- Problems with cash flow often cause strategy. Contract Negotiation and Awarding - signing and construction challenges awarding of construction contracts. The Structural Elements of an Organization 1. Men - These are the different members of PC 2- Advanced Construction Methods and organization starting from the very top to the last Preparing a Bid Package Equipment workman of the enterprise. I. Bid Solicitation - A formal request for bids 2. Materials - Represents the materials necessary in the Contract - It is an agreement between two parties distribution of functions or in the attainment of its Bid Solicitation Documents: creating a legal obligation for both of them to perform objectives. 1. Invitation to Bid - provide information that enables specific acts. 3. Machine - The tools necessary in producing its potential bidders to decide whether to participate in designed product. the procurement at hand. Requirements for a Valid Contract 4. Methods - The procedures and ways used in the 2. Request to Propose - a document issued by a project Mutual Assent- Each party must have a shared course of its action. owner to invite potential contractors or vendors to understanding regarding what the subject matter of the 5. Money - The financial resources of the organization submit proposal for specific project. contract is. Offer and Acceptance- One party must make an offer by clearly communicating their intent to be bound in a The Major Elements of Organization Structure II. Instruction to Bidders - Provide information contract ● Distribution of functions - The functions to be necesarry for bidders to prepare responsive bids, in Consideration- This where both parties mutually performed, the groupings of functions, and the vertical accordance with the requirements of the Procuring exchange something of value in order to make the and horizontal task relationships among functions. Entity. agreement binding. ● Vertical and horizontal authority relationships - Who III. Bid Data Sheet - consist of provision that has the authority to do what. supplement or specify in detail, information, or ● Communication and decision processes - The requirements included in the ITB found in Section II. Construction contract - provides a legal binding manner in which formal decisions are made and by IV. General Conditions of Contract - a complete agreement, for both the owner and the builder. whom. document expressing the right and conditions of both ● Policies - Guidelines and rules of the organization. parties. 4 Common Types of Contracts Types of Project Management Organizational IV. General Conditions of Contract Lump Sum Contract- uses a fixed price for all work done Structure on the project 1. Functional Organizational Structure - In this type of Scope of Contract - it defines exactly what the parties Unit Price Contract- prices out different categories structure, authority-driven decisions like budgeting, have agreed to do for each other. based on things like the type of task and materials used. scheduling, and purchasing equipment rest on the Terms of Payment - it’s basically the payment both Cost Plus Contract- requires the owner to fully pay all shoulders of the functional manager who possesses a parties agreed on. project costs on top of a separate payment to cover the significant level of expertise in the same field Performance Security - is like a safety promise in a deal. builder’s overhead and profit 2.Project-based oriented - organizational structure is Inspection and Tests - refers to the process of Time and Materials Contract- requires owners to pay the complete opposite of the functional organizational examining and evaluating something to ensure it meets for all project costs in addition to an agreed upon hourly structure, even though the organization may still group specific standards. or daily rate. staff according to their work functions. Warranty - a commitment made by a seller pr manufacturer to a buyer. 3. Matrix Organizational Structure - Matrix Liability of Supplier - refers to their legal responsibility Contract Documents - They are attached to the organization structure includes features of project- for the products and services they provide. Agreement identified therein as Contract Documents, organized and functional organizational structures including all additions, deletions, and modifications. 1. Weak Matrix Organizational structure- the project V. Special Conditions of Contract - assist the Procuring Parts of a Contract Document authority would fall into the hands of a functional Entity in providing contract-specific information in 1.Agreement- is used to describe the agreement signed manager as it is in a functional organization. relation to corresponding clauses in General Conditions by the Owner and the Contractor, excluding the 2. Strong Matrix Organizational Structure- has some of Contract. Contract Documents. similarities with that of a project based organizational 2.General Conditions- pertain to the roles, rights and structure in that the project manager handles a project. VI. Schedule of Requirements - a schedule of all obligations of the contracting parties, and the rules and 3. Balanced Matrix Organizational Structure- both the materials and equipment required to be expressed in procedures by which the parties and everyone project manager and the functional manager share quantity and week/months to be delivered. concerned will be able to meet their obligations and equal authority for the project. ● Framework Agreement - used when perform the Works covered under the Contract. materials/services cannot be accurately measured Legal structure - is an organizational framework for and/or is not advisable to be kept in stock. how a business entity operates. It is governed by the 3. Special Provisions/Conditions- are instructions country’s legal system. which are issued prior to bidding to supplement and/or VII. Technical Specifications -A set of precise and clear modify the Drawings, Specifications and/or General 3 main types of legal structures: specifications is a prerequisite for Bidders to respond Conditions of the Contract. 1. Sole Proprietorship - the business's founder realistically and competitively to the requirements of 4. Specifications- are the written or printed description remains the sole owner. They retain complete the Procuring Entity without qualifying their Bids. of the work to be done describing qualities of the control over every aspect of the business. material to be used, the equipment to be installed and 2. Partnership - By the contract of partnership, VIII. Checklist of Technical and Financial Documents - the mode of construction two or more persons bind themselves to A checklist of relevant documents that are attached to Technical Specifications (Specs)- is a written document contribute money, property, or industry to a the bid package. that covers the qualitative items of a project. common fund, intending to divide the profits Legal Documents: among themselves. ● PhilGEPS registration certificate. , Certificates from 3. Traditional Corporation - or C Corporation In SEC, DTI or equivalent agencies. , Mayor’s Permit/ 5.Drawings- are graphical are graphical presentations general, C corporations tend to be very large Business Permit. , Tax Clearance. of the Work, including supplementary details and shop companies. drawings 6. Addendum- An addendum to the contract defines Factors to consider in choosing the right legal Issues During Construction Phase the definitions, sections, clauses, and terms that need structure Weather Delays-Adverse weather conditions, such as modifying, and all parties must agree to and sign off on 1.Owner liability - As a business owner, it's critical to heavy rain, snow, or extreme temperatures, can them. understand the level of personal liability that you may significantly impact construction schedules. 7. Modifications- Contract modifications (frequently face, especially if the service or product you offer Labor Shortages- Skilled labor shortages can hinder referred to as "mods") are common actions for many involves higher risks. construction progress, leading to delays in completing contracting professionals. 2. Expenses and procedures - Starting a business as a tasks and potential increases in labor cost. sole proprietorship or partnership does not involve Design Changes- Changes in project specifications or much expense or paperwork. design alterations can lead to delays and additional costs 3. Taxes - The income tax status of your business is TWO TYPES OF SCHEDULE NETWORK ANALYSIS influenced by the type of business structure you choose 4. Investment needs - In case your business depends 1. Activity on Arrow (AOA) -Tool for mapping and on investors, opting for a corporation could be the ideal scheduling activities, such as tasks or events. business structure. Circles- referred to as nodes to represent events Arrow- represents the activity and its duration. The Role of a Legal Structure in Construction Contracts 2. Activity on Nodes (AON) Tool for mapping and 1.Clarity of ownership and responsibilities - When a scheduling of activities that are represented by arrows business has a well-defined legal structure in place, it and nodes/box at each end to show the start and finish can help to minimize the likelihood of disputes and of activity. conflicts among business owners. • focuses on tasks • can show any type of relationship 2. Personal asset protection Business owners must • (start to finish, start to start, finish to finish, and finish take steps to protect their assets, both from a data to start) security standpoint and from a legal standpoint
3. Maximize profitability It is important to note that
the profitability of your construction company can be significantly affected by the tax implications of different legal structures 4. Promote investor confidence Many investors prefer to invest in companies that have clear legal structures and are held accountable for their actions. 5. Ensure business longevity Your choice of legal structure for your business also affects its longevity and continuity.
Construction Project Requirements - Are the specific
needs and goals that a construction project must meet in order to be considered successful.
The Pre-Construction - Phase is the initial stage of a
construction project. Project Proposal - construction requirements is essential to outline the scope, objectives, and specifications of a construction project Feasibility Study - is a crucial step in determining the viability and potential success of a construction project. Contractor Selection and Contracts -Is a crucial step in determining the viability and potential success of a construction project Permitting and Approvals - Obtain all necessary permits and approvals from local authorities.
The construction - phase of a project is the stage in
which the actual building or construction work takes place.
Scope of Work - Review and Ensure contractors
understand the scope. Progress Report - Provide regular progress reports to the project owner and stakeholders. Quality Assurance Testing - Conduct required testing and inspections on materials and systems to ensure compliance with standards. Health and Safety Compliance - Continuously enforce health and safety regulations, Project Schedule - Create an initial project schedule that outlines key milestones and timelines
Post-construction phase - of a construction project
involves several key requirements and activities to ensure the successful completion and transition of the project to its intended use.
Final Inspection and Punch List - Conduct a final
inspection to identify any remaining defects or incomplete items in the construction work. Occupancy Permit or Certificate of Completion - Obtain the required occupancy permit or certificate of completion from local authorities, if applicable Facility Management and Maintenance Planning - Develop a comprehensive facility management plan that outlines ongoing maintenance, repair, and operational procedures
TOPIC 4
Planning - is the process of making plans for
something. Scheduling - is the process of arranging or planning to take place at a particular time. Schedule network analysis - is an analytical technique to identify critical path and list of critical project activities. Schedule network diagram - is a graphical representation of the project’s activities.
Philippine Interpretations Committee (Pic) Questions and Answers (Q&A) Q&A No. 2018-12 Pfrs 15 Implementation Issues Affecting The Real Estate Industry