Index No.

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES Issue No.

College of Architecture and Fine Arts
Architecture Department Revision No.
Date

LESSON PLAN – MODULE 01 Page

CAFA-ARD
Week 2-4, 2nd Semester, S.Y. 2023-2024 QAC No.

Course Specification Introduction to Construction

Course Code ARSP 03
Title Specialization 03 Management
Construction Management
Description This course is about methodologies
and tools necessary for each aspect The Definition of a “Project”
of construction project life cycle
broken into organizing, planning, Formally, a project may be defined as “A temporary
monitoring, and controlling as well endeavor undertaken to create a unique product,
as the theories upon which these are service, or result”.
built.
Units 3 lecture units
Three Project Objectives: The “Triple
Hrs/Week 3 hours per week
Pre-requisite ARPP 3, ARBT 5
Constraint” or “Iron Triangle”
Duration 15 Weeks (Graduating) • specified deliverables (scope),
Student Level 5th Year Standing • a specific deadline (time), and
Instructor Arch. Jemnerey B. Co, UAP • budget (cost).
Reference 1. Project Management: A Strategic
Books Managerial Approach, Tenth Project success has four dimensions:
Edition, Jack R. Meredith, Scott M. • project efficiency,
Shafer, and Samuel J. Mantel Jr.,
• impact on the customer,
(John Wiley and Sons, 2018)
2. The Management of • the business impact on the organization, and
Construction: A Project Life Cycle • opening new opportunities for the future.
Approach, F. Lawrence Bennett,
(Butterworth, Heineman, 2003) Characteristics of Projects
3. Project Construction • unique.
Management, Second Edition, Max • one-time occurrence with a well-defined and
B. Fajardo Jr. (2000)
specific set of desired end results
4. Introduction to Engineering
Construction Inspection, Edward R. • finite duration.
Fisk, Randy R. Rapp (John Wiley
and Sons, 2004) Interdependencies
5. Construction Project • Projects often interact with other projects
Management: A Practical Guide to being carried out simultaneously by their
Field Construction Management, parent organization.
Fifth Edition, S. Keoki Sears, Glenn • Projects also typically have limited budgets,
A. Sears, and Richard H. Clough
both for personnel and other resources.
(John Wiley and Sons, 2008)
6. Construction Contract • More than most managers, the PM lives in a
Administration Practice Guide, world characterized by conflict.
Construction Specifications Institute
(John Wiley & Sons, 2011) Non-projects and Quasi-Projects

• Non-projects are tasks that are performed in

day-to-day activity.
• Quasi-projects are tasks that are performed in
a short span of time that will supplement the
arising conflicts in a project.

AR Specialization 03: Construction Management | Page 1 of 17

Why Project Management? Construction industry segments
Forces Fostering Project Management General building construction
- projects that include residential, commercial,
• First, the expansion of knowledge allows an institutional, and industrial buildings.
increasing number of academic disciplines to
be used in solving problems associated with Engineered construction
the development, production, and distribution - is characterized by designs prepared by
of goods and services. engineers rather than architects, the provision
• Second, satisfying the continuing demand for of facilities usually related to the public
more complex and customized products and infrastructure and thus owned by public-sector
services depends on our ability to make entities and funded through bonds, rates or
product design an integrated and inherent part taxes and a high degree of mechanisation and
of our production and distribution systems. the use of much heavy equipment and plant in
• Third, worldwide markets force us to include the construction process.
cultural and environmental differences in our
managerial decisions about what, where, - Subcategories
when, and how to produce and distribute o Highway construction - typically requires
output. excavation, embankment construction,
paving, installation of bridges and drainage
Trends in Project Management structures and associated lighting and
• Achieving Strategic Goals signage.
• Achieving Routine Goals o Heavy construction - projects include
• Improving Project Effectiveness dams, tunnels, pipelines, marine
• Virtual Projects structures, water and sewage treatment
• Dynamic and Quasi-Projects plans, railroads, rapid transit systems,
airports and utility work such as electrical
transmission and distribution systems,
Construction Projects water lines, sanitary and storm drains,
pumping stations and street paving.
• Construction is the translation of owner’s
goals, and objectives into a facility built by the Construction industry characteristics
contractor/builder as stipulated in the contract
documents, plans, and specifications on • construction plays in the overall economy,
schedule and within the budget. • the relative proportions of the various
• A construction project is a custom rather than construction categories and
a routine, repetitive business and differs from • the character of the industry in terms of the
manufacturing. sizes of companies that carry out construction
• Construction projects work against the defined work.
scope, schedule, and budget to achieve the
specified result.
The Project Life Cycle

• Pre-project phase
• Planning and design phase
• Contractor selection phase
• Project mobilization phase
• Project operations phase
• Project closeout and termination phase

AR Specialization 03: Construction Management | Page 2 of 17

Pre-construction Planning

Selection of project delivery system

System Features Advantages Limitations
Traditional Separation of design and • Certainty of price • No opportunity for phased
design– Construction responsibilities • Clarity of roles construction
tender–build • No coordination risk to Owner • Fixed price established late in
Completion of design prior to • Easy to accomplish changes process
selection of contractor during design • Owner administers all design and
construction contracts
• No contractor input to design
Design– Single organization responsible • Single point of responsibility • Difficulty of formulating price prior to
build for design and construction • Constructability input during design
design • Lack of oversight by designer
• Fixed price early in process • Costly tendering process
• Opportunity for phased • Less control by owner
construction
Construction Professional manager to • Construction expertise available • Increased overhead costs.
manager advise owner and designer on during design phase • Owner may take on greater risks
construction aspects. • Construction manager provides under ‘agency’ type, especially if
advice to owner during multiple primes are used.
May be agency type (advisory construction phase. • Owner relinquishes some control
role only) or at-risk type (more • Under ‘at risk’, some risk is
responsibility for on-site removed from owner
performance)
Project Professional manager to • Owner relies on project manager • Owner relinquishes considerable
manager advise owner and designer on for coordination of most aspects control.
all aspects of project of project. • Increased overhead costs
• Potential for rapid project start-up
and prosecution
Document Early design performed under • Fixed-price contract and complete • Designer may not control whom it
and contract to owner. documentation before ultimately works for
construct construction begins. • New and unfamiliar Method
Later design performed • Centralized responsibility • Limitations similar to design–build
(possibly by same designer) • Constructability considered during
under contract to contractor design
Separate Owner contracts with individual • High degree of control by owner • Requires owner construction
prime specialty contractors • Savings in cost of engaging expertise.
contracts general contractor • General contractor risks assumed by
• Potential for effective phased owner.
construction • Less clear relationship between
designer and onsite activities
Turnkey Single organization responsible • Owner relies on turnkey • Requires clear and detailed scope
for all aspects of project contractor for entire project. and needs statement at beginning of
including, but not limited to, • Potential cost and time savings project.
design and construction • Owner relinquishes almost all control
Build–own– Single organization responsible • Owner transfers most risk to • Major risks to project sponsor
operate– for designing, building, and project sponsor. • Complexity due to large number of
transfer operating facility for a certain • Design tends to recognize long- parties
time period, after which it is term cost impacts. • Long lead time
transferred to owner • Constructability considered during • Large up-front costs
design
Joint Two contractors in a temporary • Takes advantage of strengths of • Coordination challenges
venture partnership to build a single each coventurer • Like a partnership, requires very
project • Allows combined expertise to clear agreement between the
build large projects. coventurers
• Allows each contractor to gain
experience in new area or with
new type of work
Force Construction project carried out • Avoids time and expense of • The workforce may lack the
account by owner’s own forces tendering. necessary skills.
• Owner can exercise more direct • The owner may lack the needed
control managerial expertise.
• No price competition

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Selection of type of contract • Contractors provide tenders based on
estimated quantities provided by the owner, so
Lump sum/fixed price that each tenderer’s price is based on
common set of quantities.
• the contractor is paid a pre-agreed fixed • Thus, prior to the work, the tender prices are
amount for the project, based on a contract for based on estimated quantities, whereas
a specified amount of in-place finished during and after the work, the payment is
construction work. based on actual quantities.
• This amount is paid without regard for the • contractor’s unit prices must cover not only
actual costs experienced by the contractor. direct costs but also indirect costs, overheads,
• For such a contract, the project must be contingencies, and profit; the contractor is
completely defined by the contract documents paid only for items on the quantity list and paid
prior to receipt of proposals, selection of the at the pre-agreed unit prices.
contractor and formation of the contract. • In this document, a Variation has special
• The price of the lump sum, or ‘stipulated sum’, meaning, and a strict process that seeks to be
contract must include all direct costs of labor, fair to both owner and contractor is set forth to
materials, equipment and subcontractors, as provide recompense for the contractor.
well as such indirect costs as field supervision,
field office, equipment maintenance and the Cost plus
like, plus general company overhead, plus
profit. The contractor in essence guarantees • The owner pays the contractor’s costs related
the completed project for the stipulated price. to the project plus a fee that covers profit and
• This type of contract is suitable for such non-reimbursable overhead costs.
projects as buildings, which can be completely • This approach seems simple, straightforward
designed and whose quantities are thus and desirable, at first glance. However, there
definable, at the beginning of the project. are some disadvantages. Two types of cost-
• Two advantages to the owner of lump-sum plus contracts are used:
contracts are the fact that the total cost of the o cost plus a percentage of costs, under
project is known before construction begins which the fee is an agreed-upon
and the lack of a need to monitor and approve percentage of the ‘costs’ and
the contractor’s costs. o cost plus fixed fee, wherein the fee does
• On the other hand, the owner bears the risk of not depend on the contractor’s costs. Of
poor quality from a contractor trying to particular importance in this type of contract
maximise profit within the fixed sum; other is the need to define ‘costs.
potential disadvantages to the owner include
the high cost and long time required for
contractors to prepare tenders; although such
Project Organization
costs are borne by the contractor, ultimately,
they are built into the successful contractor’s The parties and their roles
total price.
• In addition, the flexibility of this contract form Architect
is limited; any variation from the original plans
and specifications requires a change order, a • If it is a building or other facility project, the
process that can be time consuming and architect is likely to lead the planning and
expensive and may even lead to contract design team.
disputes. • On a facilities project, the architect takes the
lead responsibility for developing the owner’s
Unit price/measure and value programme, first into a generic or conceptual
design, then into more detailed floor plans and
• this method determines the amount the finally into a complete set of drawings and
contractor will be paid as the project proceeds other documents sufficient to have the project
by requiring that the actual quantities of assembled in the field.
finished product be measured and then • The architect is concerned with building space
multiplied by pre-agreed per-unit prices. use, appearance, relationships among users

AR Specialization 03: Construction Management | Page 4 of 17

 and spaces and finishes, as well as the overall and rights of way, establishment or re-
coordination of all parties to the planning and establishment of property corners and
design process. boundaries, determination of land contours
• In addition, the architect will probably be in and slopes and location of existing
charge of the process to select the contractor improvements, natural features and
and may be involved, during construction, in obstructions.
quality control inspections and other activities • A pipeline or highway project can involve
on behalf of the owner. much preliminary route layout as various
• When the engineer is in charge of a highway, alternative routes are investigated.
industrial, heavy or utility project, the • This effort includes on-the-ground,
architect’s role, if any, will generally be aerial/photogrammetric and satellite-based
confined to the visual appearance and finish global positioning system methods that lead to
details of any buildings and other structures. route layouts, various kinds of maps and
geographic information system databases for
Engineer use in project planning.
• Surveyors may also be involved in the
• For non-facility projects, the overall role of the construction phase, but they are equally
engineer is much the same as that provided important as part of the planning and design
by the architect on facilities projects. The team.
engineer takes charge of the planning and
design phase, coordinating the various parties Quantity surveyor
and their activities, often including the
contractor selection and project inspection • The quantity surveyor prepares schedules of
tasks. quantities of the various project elements. In
• Depending on the project, the engineer may some cases, this work is performed in
be involved with utilities studies, structural conjunction with that of the cost estimator.
design, heating, ventilating, and air • In many places in the world, a schedule of
conditioning (HVAC) systems, data quantities is prepared for most types of
communications systems, roadway layout, construction contracts, including lump sum
pavement design and earthwork and and unit price.
foundation systems. • in other places the quantity surveyor prepares
• For a facilities project, the engineer typically schedules of quantities for unit-price
fills a supporting role, providing planning and contracts, while the quantity take-off work for
design services in geotechnical, structural, lump-sum contracts is left to individual
mechanical, and electrical aspects of the tenderers.
project.
Project manager
Geotechnical specialist
• The PM’s responsibilities are broad and fall
• If a building is being planned, the geotechnical primarily into three separate areas:
specialist might be engaged to advise on o responsibility to the parent organization,
dealing with earthquake susceptibility, soft o responsibility to the project and the client,
sediments, alternative foundation solutions, and
unstable slopes, and flooding potential. o responsibility to the members of the project
• If the design professional is planning and team.
designing a roadway, geotechnical expertise • Responsibilities to the firm itself include proper
might contribute studies of environmental conservation of resources, timely and
impacts, frost-heave potential, erosion control, accurate project communications, and the
embankment and base course material source careful, competent management of the
evaluation and slope stability. project.
o It is very important to keep senior
Land surveyor management of the parent organization
fully informed about the project’s status,
• For building projects, this work includes cost, timing, and prospects.
investigation of property records, easements
AR Specialization 03: Construction Management | Page 5 of 17
 o It is also a major, and ethical, responsibility • a project may be organized in a functional
of the PM to inform senior management if organization is to assign the work to all the
the viability of the project has become relevant functional divisions with either top
doubtful due to its inability to achieve the management overseeing the effort or else
organization’s strategic objectives. someone assigned to coordinate their efforts,
• The PM’s responsibility to the project and perhaps as a project manager or possibly as
client is met by ensuring that the integrity of just a facilitator.
the project is preserved in spite of the
conflicting demands made by the many • There are advantages and disadvantages of
stakeholders who have legitimate interests in using a functional placement for a project,
the project. assuming that the organization is functionally
• The PM’s responsibilities to members of the organized. The major advantages are as
project team are dictated by the finite nature of follows:
the project itself and the specialized nature of o There is maximum flexibility in the use of
the team. staff.
o Because the project is, by definition, a o Individual experts can be utilized by many
temporary entity and must come to an end, different projects.
the PM must be concerned with the future o Specialists in the division can be grouped
of the people who serve on the team. to share knowledge and experience.
o If the PM does not get involved in helping o The functional division also serves as a
project workers with the transition back to base of technological continuity when
their functional homes or to new projects, individuals choose to leave the project, and
then as the project nears completion, even the parent firm.
project workers will pay more and more o Finally, and not the least important, the
attention to protecting their own future functional division contains the normal path
careers and less to completing the project of advancement for individuals whose
on time. expertise is in the functional area

Special Demands on the Project Manager • Just as there are advantages to using a
functional placement, there are also
• Acquiring adequate resources disadvantages:
• Acquiring and Motivating Personnel o A primary disadvantage of this
o The most effective team members have arrangement is that the client is not the
some common characteristics: focus of activity and concern.
▪ High-quality technical skills o The functional division tends to be oriented
▪ Political, and general, sensitivity toward the activities particular to its
▪ Strong problem orientation function.
▪ Strong goal orientation o Occasionally in functionally organized
▪ High self-esteem projects, no individual is given full
o Four development phases of a team: responsibility for the project.
▪ Forming o The same reasons that lead to lack of
▪ Storming coordinated effort tend to make response to
▪ Norming client needs slow and arduous.
▪ Performing o There is a tendency to suboptimize the
project.
Attributes of Effective Project Managers o The motivation of people assigned to the
• Credibility project tends to be weak.
o Technical Credibility o Such an organizational arrangement does
o Administratively Credible not facilitate a holistic approach to the
• Sensitivity project.
• Leadership, Ethics, and Management Style
• Ability to Handle Stress

Projects in a Functional Organization

AR Specialization 03: Construction Management | Page 6 of 17

Developing the Project Plan o project methodology;
o availability of resources;
o schedule;
Planning and feasibility study stage o an indication of how well the proposer
understands the project.
• Two key things should be accomplished early • Like construction contracts, payments for
in the planning and feasibility study stage. professional design services can be
o First, there must be a clear understanding determined in several ways.
of the project’s objectives, purposes, scope o percentage of construction cost
and nature by both the client/owner and o multiple of salary cost
organization responsible for carrying out o multiple of salary cost plus non-salary
the work (or at least those members of the expense
project team identified by that time); a brief o fixed lump-sum fee
or other defining document is essential to o total expense plus professional fee
this process. o hourly or per diem charge.
o Second, a relationship between the
client/owner and the project delivery Program development
organization must be established, with
clearly defined roles and responsibilities. • A construction project is built to achieve
certain objectives, as defined in the brief.
Consultant selection Those objectives will be achieved if the
elements of the program are satisfied.
• Proposals from prospective consultants shall • Thus, after the brief, a more comprehensive
have at least of the following: statement of those elements must be
o statement of work, developed, elements that will be translated
o areas of expertise required, into the physical aspects of the completed
o time schedule, project.
o type of contract proposed, • It is likely that several parties will be involved
o project budget, in program development.
o submittal date,
o information to be included in the proposal Identification of alternatives
and
o expected selection date. • For a facility project, the architect will begin to
• Qualifications-based selection (QBS) uses develop general concepts, perhaps using
criteria other than price to select the proximity or bubble diagrams to show
consultant, with the fee decided after relationships among the facility’s functions,
selection. leading to preliminary floor plans and
• Fee-bidding is the term used to refer to the renderings.
process in which design professionals are o The engineer will support this process with
required to submit a proposed fee with their general investigations of utilities, structural
proposals. components, sitework and communication
• Assuming a QBS procedure, the proposals systems. For a highway or bridge project,
would include such elements as the following: the engineer will lead the effort to develop
o past experience with projects of a similar preliminary layouts of each alternative, their
nature. alignments and general shape.
o details of organization, project control and o The result of this part of the planning
financial control; process will be a collection of preliminary
o size, expertise and responsibilities of staff, drawings and descriptions for alternatives
especially the qualifications of the whose costs can be estimated, whose
proposed project design manager. general timelines can be forecast and
o type of organization and managerial whose construction techniques can be
method for executing the work; studied, with the goal of identifying
o quality assurance organization; financially and technically feasible options,
o knowledge of local conditions; if any, and then selecting the preferred
o local resources; option.
AR Specialization 03: Construction Management | Page 7 of 17
 • A master plan is a document that lays outs the • Additional investigation may be needed later;
various physical elements of the project in at this planning phase, the site studies are
their proposed locations on the project site oriented toward providing sufficient
together with general descriptions of the information to assist with decisions about
project features. feasibility and selection.
o The identified alternatives provide a
structured means of studying the options Constructability analysis
available for supplying the elements in the
master plan in order to meet the project’s • Throughout planning and design, it is essential
objectives. to consider whether proposed alternatives can
• It should be noted that the contract with the be built and whether they can be built
design professional is often subdivided and efficiently.
agreed to in phases, in order to define the • DeWitt (1999) describes constructability
scope and services and attendant fees more analysis (also called constructability review)
accurately. as a process that utilizes experienced
o For example, a contract with a defined construction personnel with extensive
scope and cost may be issued for the construction knowledge early in the design
development of a master plan in order to stages of projects to ensure that the projects
examine alternatives and elicit community are buildable, while also being cost effective,
input. Then, once the scope of the project biddable, and maintainable.
is well defined, a second contract can be • During the planning and feasibility study
written that allows better clarification and stage, even though the development to that
control of cost and outcome. point is mainly conceptual, each alternative
will be studied for such things as ease of
Site investigation construction, impact on the project schedule,
effects that different materials might have on
• In parallel with other preliminary planning, procurement and installation, safety
investigation of the site is conducted at varying considerations and various coordination
levels of detail. issues among personnel, equipment, and
• When several alternatives are still under materials. The design professional may
consideration, the various potential sites will perform this analysis with its own forces, or it
be studied from the standpoint of general soil may engage a consultant with special
conditions, topography, access and cost. knowledge of construction procedures.
• As the options are narrowed, further detail will • If a construction manager is a part of the
be developed on the preferred option or project team, constructability will be a major
options. responsibility.
• The geotechnical specialist will provide major
input at this step. Soil conditions that influence Code analysis
foundation types must be identified.
Environmental aspects of the site, including • Building codes, fire codes, plumbing codes,
potential underground contaminants, wetland electrical codes and a number of other codes
issues and endangered species must be and regulations may apply to the project being
studied. planned.
• Site investigation also includes options for • During the planning stage, it is important that
preserving existing vegetation and existing all alternatives under consideration can be
improvements, if any, various ways for made to comply with these documents. Thus,
accessing the site and interfacing with off-site a code analysis will be required.
traffic flow, flow of people and vehicles on site,
availability of utilities and various security Preliminary cost estimate
matters.
• In addition, property surveys may be needed • In order to determine whether an alternative
to establish corners and boundaries and under consideration is financially feasible, an
investigation into ownership records may be estimate of its cost is needed.
required to establish who owns title to the land
and in what form.
AR Specialization 03: Construction Management | Page 8 of 17
 • During the planning process, such an estimate • The cost estimates over the life cycle for each
cannot be made with a large degree of alternative form the basis for these feasibility
precision. studies.
o Typically, some proposed options will be
Financial feasibility analysis discarded at this stage because they are
not financially viable.
• Not only must a project meet certain technical o Those remaining will be compared with
and performance requirements, it must also each other, considering both financial and
be financially viable. other factors, to arrive at a recommended
o The funds proposed to be invested in the option.
project must show the potential to generate
an economic return to those investing in the Project recommendation
project that is at least equal to that available
to them from other similarly risky • Having studied the various options from the
investments. standpoint of costs, economic benefits, ease
o This concept of ‘return on investment’ is of construction, schedule impacts, as well as
appropriate for most projects, whether in the all-important matter of alignment with user
the private or public sector. objectives and the project program, the design
o For a private-sector manufacturing facility, professional is then in a position to
the company making the investment of recommend an option.
funds expects to generate sufficient cash o Whatever the recommendation, the design
flows from operating the facility to pay for professional will prepare a report for the
the construction and the ongoing operating owner describing the planning process,
expenses and, in addition, have an identifying the alternatives and explaining
attractive interest rate of return. the rationale for the selected option.
• In the case of a publicly funded roadway or o If the recommendation is to proceed, the
school facility, those ratepayers who provide report will suggest the appropriate steps to
the funding expect that the benefits, either in be taken to launch the design stage.
money terms or in non-quantifiable measures,
will be at least equal to the funds invested in Funding
the project. • The point in time at which funding approval is
• Admittedly, the benefits derived from a school sought for a project varies with the nature of
building project are more difficult to estimate the project.
than are its costs. o Sometimes the money has been allocated
o However, some consideration must be before much of the planning process has
given to whether the benefits, both financial been carried out. Occasionally a complete
and otherwise are at least equal to the design is prepared, ready for contractor
monetary costs. selection, prior to availability of funds.
• All cash flows throughout the project’s o Later approvals may also be required, such
development and operation life cycle must be as approval of the selection of the prime
considered in making such analyses. construction contractor for a certain fixed
o The term life cycle costing refers to price, but the approvals that follow the
economic studies that include all such cash planning stage set funds for the project
flows. The cost of maintaining and aside, with the expectation that the work
periodically upgrading a highway and will be completed if it can be done in
bridge project must be estimated, along accordance with the plans developed thus
with its design and construction costs, to far.
determine whether it is likely to be feasible.
o Estimates of the cost of operating and Site selection and land acquisition
maintaining a manufacturing plant, as well • Until funding is approved, there is no need to
as the income its operation is expected to acquire land for the project (assuming the site
generate, will be essential in determining is not already in possession of the owner).
financial viability. • various sites will likely have been investigated,
each with alternative layouts specific to the
site.
AR Specialization 03: Construction Management | Page 9 of 17
 • In our site investigation section, we listed such topographic surveys prepared earlier, with
considerations as soil conditions, topography, some updating following site selection;
access, and environmental impacts as features include topography, soil conditions,
important site characteristics. parking, access, utilities, setback
• Note that ‘site’ will have different meanings requirements, water features, drainage,
depending on whether the project is a building, required easements and existing structures.
a roadway, an airport, or some other • Surveyors will continue their previous efforts
development. In roadway construction, for with title searches, photogrammetry and on-
example, right-of-way specialists are site surveying and mapping.
important members of the project team.
• When funding is approved, it may be for a Tasks
project at a specific site or the approval may
allow for alternative sites, depending upon Schematic design
further investigation and negotiation. • Design Documents
o In any case, ultimately the project site, if not o Site Plan
already owned, must be acquired, through o Floor Plans
purchase, lease, or other arrangement. o Exterior Elevations
o Sometimes public projects utilize the o Building Sections
process of eminent domain by which o HVAC Basis of Design
private land may be acquired even from o Structural Basis of Design
reluctant sellers under certain limited • Lab Safety Approach
conditions. • Code Analysis
• The site acquisition step completes the usual • Site Utilities
process of planning and feasibility study and • Cost Estimate
allows the design stage to begin. • Agency Review
o For a typical project, approximately 10% of
the planning and design effort has been Design development
completed at the end of the planning and • Design Documents
feasibility study stage. o Site Plan
o Floor Plans
o Exterior Elevations
Design stage o Enlarged Elevations
o Building Sections
Principles o Wall Sections
• The design professional is responsible for o Reflected Ceiling Plans
producing a set of preliminary drawings as o Laboratory Layout Plans
well as a written report, for approval by the o Structural Plans
owner. o MEP Distribution Layout
• On a building project, the architect will take the o Specifications
lead in developing a design concept with plan, • Update Code Analysis
elevation and sectional views that meet the • Site Utilities
space and program requirements. • Cost Estimate
o Engineers will develop concepts of how the
• Agency Review
various systems will fit into the facility:
foundation systems, cooling and heating
Preparation of Construction Documents
systems and data communication systems.
• Design Documents
• These preliminary drawings may be freehand
o Site Plan
sketches, but they should illustrate the
o Floor Plans
project’s character and emphasize such
o Exterior Elevations
aspects as harmony with the surrounding area
o Enlarged Elevations
and any improvements, architectural style,
o Building Sections
exterior appearance, planning and zoning
o Wall Sections
requirements and overall structural concepts.
o Reflected Ceiling Plans
• Civil engineers will become involved in site o Enlarged Plans
analysis and layout, based in part on legal and
AR Specialization 03: Construction Management | Page 10 of 17
 o Schedules, Details o It may, if the PM wishes, list the vendors or
o Laboratory Plans subcontractors associated with specific
o Structural Plans tasks.
o MEP Plans & Schedules o It may be used to document that all parties
o Specifications have signed off on their various
• Update Code Analysis commitments to the project.
• Site Utilities o It may note detailed specifications for any
• Cost Estimate work package, establish account numbers,
• Agency Approval specify hardware/ software to be used, and
identify resource needs.
Bidding/negotiation o It may serve as the basis for making cost
• Constructability Reviews estimates or estimates of task duration.
• Pre-Bid Meetings/Addenda o Largely, the WBS is a planning tool, but it
• Bid Evaluation Support may also be used as an aid in monitoring
and controlling projects.
• GC/Subcontractor Selection

Construction Administration
• Shop Drawing Review
• Contractor RFI Responses
• Issue Clarifications
• Weekly Site Meetings
• Process Change Orders
• Prepare Punch Lists
• Building Commissioning
• Post Occupancy Reviews

Work Breakdown Structure

• The WBS is the main tool for managing the

project scope.
• WBS is a simplified form of the project plan
focused on the actual tasks of the project. It
often shows the organizational elements
associated with a project subdivided into
hierarchical units of tasks, subtasks, work
packages, etc.
• WBS is an important document and can be
tailored for use in a number of different ways.
o It may illustrate how each piece of the
project contributes to the whole in terms of
performance, responsibility, budget, and
schedule.

AR Specialization 03: Construction Management | Page 11 of 17

Project Budget and Cost o The PM adds such indirect costs as general
and administrative (G&A), possibly a
Breakdown Structure project reserve for contingencies, and then
a profit figure to arrive at the final project
Estimating Project Budgets budget.

In order to develop a budget, we must forecast An Iterative Budgeting Process—Negotiation-

what resources the project will require, the in-Action
required quantity of each, when they will be
needed, and how much they will cost, including the • The strength of this planning technique is that
effects of potential price inflation. Uncertainty is primary responsibility for the design of a task
involved in any forecast, though some forecasts is delegated to the individual accountable for
have less uncertainty than others. its completion, and thus, it utilizes participative
management (or “employee involvement”).
Top-Down Budgeting o If done correctly, estimated resource usage
and schedules are a normal part of the
• This strategy is based on collecting the planning process at all planning levels.
judgments and experiences of top and middle o Therefore, the superior constructing a WBS
managers, and available past data concerning at the highest level would estimate
similar activities. resource requirements and durations for
o These managers estimate overall project each of the steps in the WBS.
cost as well as the costs of the major
subprojects that comprise it. Project Cost System
o These cost estimates are then given to
lower-level managers, who are expected to • During the design phase of a construction
continue the breakdown into budget project, the project costs are continuously
estimates for the specific tasks and work approximated and reviewed following each
packages that comprise the subprojects. design change to ensure that they will not
o This process continues to the lowest level. exceed the owner’s budget.
o This working budget is generally referred to
Bottom-Up Budgeting as the engineer’s or architect’s estimate.
o Upon design completion, the field cost-
• In this method, elemental tasks, their control system is initiated by making a final,
schedules, and their individual budgets are detailed cost estimate of the entire work.
constructed, following the WBS. o The construction contractor or another
o The people doing the work are consulted party who will be directly involved in the
regarding times and budgets for the tasks field operations normally prepares this
to ensure the best level of accuracy. ‘‘contractor’s estimate.’’
o Initially, estimates are made in terms of o The contractor’s estimate is then reduced
resources, such as labor hours and to a working construction budget and forms
materials. These are later converted to the basis of the construction cost control
dollar equivalents. system.
o Standard analytic tools such as learning
curve analysis and work sampling are Preliminary Cost Estimates
employed where appropriate to improve the
estimates. Some of the methods commonly used to prepare
o Differences of opinion are resolved by the preliminary estimates include:
usual discussions between senior and
• Cost per Function Estimate
junior managers.
o This analysis is based on the estimated
o If necessary, the PM and the functional
expenditure per unit of use, such as cost
manager(s) may enter the discussion in
per patient, student, seat, or car space.
order to ensure the accuracy of the
o Construction expense may also be
estimates.
approximated as the average outlay per
o The resulting task budgets are aggregated
to give the total direct costs of the project.
AR Specialization 03: Construction Management | Page 12 of 17
 unit of a plant’s manufacturing or doors, glazed openings, plumbing, heating
production capacity. and ventilating, electrical, and other items
• Index Number Estimate are determined separately by the use of
o This method involves estimating the price estimated parameter costs.
of a proposed structure through updating o These unit expenses can be based on
the construction cost of a similar existing dimensions or quantities of the components
facility. themselves or on the common measure of
o It is done by multiplying the original building square footage.
construction cost of the existing structure • Partial Takeoff Estimate
by a national price index that has been o This analysis uses quantities of major work
adjusted to local conditions, such as items taken from partially completed design
weather, labor expense, materials costs, documents.
transportation, and site location. o These are priced using estimated unit
o A price index is the ratio of present prices for each work item taken off.
construction cost to the original
construction outlay for the type of structure Final Cost Estimate
involved.
o Many forms of price indexes are available • The final cost estimate of a project is prepared
in various trade publications. when finalized working drawing and
• Unit Area Cost Estimate specifications are available.
o This method of estimating facilities costs is • This detailed estimate of construction expense
an approximate cost obtained by using an is based on a complete and detailed survey of
estimated price for each unit of gross floor work quantities required to accomplish the
area. work.
o The method is used frequently in building • The process involves the identification,
and residential home construction. compilation, and analysis of the many items of
o It provides an accurate approximation of cost that will enter into the construction
costs for structures that are standardized or process.
have a large sampling of historical cost • Such estimating, which is done before the
information from similar structures. work is actually performed, requires careful
o This type of estimate is used often in the and detailed study of the design documents,
industry to compare the relative worth of together with an intimate knowledge of the
various facilities. prices, availability, and characteristics of
• Unit Volume Cost Estimate materials, construction equipment, and labor.
o This estimate is based on an approximated
expenditure for each unit of the total Factors to be considered in preparing the Cost
volume enclosed. Estimates:
o This estimating method works well in • Management Input
defining the costs of warehouses and • Field Supervision
industrial facilities. • Construction Methods
• Panel Unit Cost Estimate • General Time Schedule
o This analysis is based on unit costs per
• Construction Equipment
square unit area of floors, unit length of
• Material Costs
perimeter walls, partition walls, and unit
• Labor Costs
roof area.
• Indirect Labor Costs
o Generally this form of estimating is used to
improve the preceding estimates once • Labor Unit Costs
additional detailed information about the • Bids from Subcontractor
facility is known. • Project Overhead
• Parameter Cost Estimate • Home Office Overhead
o This estimate involves unit costs, called • Markup
parameter costs, for each of several • Contract Bonds
different building components or systems.
o The prices of site work, foundations, floors,
exterior walls, interior walls, structure, roof,
AR Specialization 03: Construction Management | Page 13 of 17
Scheduling and Risk Analysis 5. Use consistent time units throughout.
6. Assume normal weather conditions in
estimating the duration needed to accomplish
A project schedule is a projected timetable of each activity.
construction operations that will serve as the
principal guideline for project execution. Several
steps are involved in devising an efficient and
workable job schedule. The next list of eight steps
is offered as a procedural guide.

1. Estimate the time required to carry out each

network activity.
2. Compute the time period required for overall
project completion using these time
estimates.
3. Establish time intervals within which each
activity must start and finish to satisfy the
completion date requirement.
4. Identify those activities whose expedient
execution is crucial to timely project
completion.
5. Shorten the project duration at the least
possible cost if the project completion date
will not meet the contract or other
requirements.
6. Adjust the start and finish times of selected
activities to minimize resource conflicts and
smooth out demands for manpower and
equipment using surplus or float times that
most activities possess.
7. Make a working project schedule that shows
anticipated calendar dates for the start and
finish of each network activity.
8. Record the assumptions made and the plan’s
vital boundary conditions. These will become
an integral aspect of the completed baseline
project schedule.

Rules for Estimating Activity Durations

Six important rules apply to the estimation of

activity durations:

1. Evaluate activities one at a time,

independently of all others.
2. For each activity, assume a normal level of
manpower and/or equipment.
3. If time units of working days are being used,
assume a normal workday.
- Do not consider overtime or multiple shifts
unless this typical or a part of the standard
workday.
- Some labor contracts guarantee overtime
work as a part of the usual workday or
workweek. In these cases, the extra hours are
normal and should be considered.
4. Concentrate on estimating the duration of the
individual activity and ignore all other time
considerations.
AR Specialization 03: Construction Management | Page 14 of 17
 which it was developed was typified by high
uncertainty.
o CPM originally made no provisions for
variable time estimates.
• PERT/CPM is a control tool for defining the
parts of construction job and then putting them
together in a network form.
o It serves as an aid to the construction
manager but it does not make decision for
him nor does it guarantee good
management.
o PERT/CPM only serves the project
manager to see the whole picture of the
entire job.
o It encourages periodic re-evaluation and
providing an accurate measure of progress.
Thus, a person in charge of each work and
the project manager know what is
supposed to happen and when it is
supposed to happen.

• With the use of PERT/CPM, the project

manager can easily obtain the following
information:
o The graphical display of project activities
The Critical Path Method (CPM) o An estimate of how long will the project last
and Program Evaluation Review o Determine which activities are the most
critical to timely project completion
Technique (PERT) o Determine how long any activity can be
delayed without lengthening the project.
• CPM was designed as a tool for planning,
scheduling, and control of construction work.
o Its emphasis was on the work or activities
PERT/CPM as a mandatory
to be managed. requirement
o The network diagram defined and focused
attention on the job to be accomplished. In all major projects of the government, PERT and
o The schedule derives the earliest and the CPM network is a mandatory requirement.
latest times for their start and finish.
• PERT was developed as a result of looking for • Under Presidential Decree No. 1594,
an improved method of planning and “Prescribing Policies, Guidelines, Rules and
evaluating progress of a large-scale research Regulations for government infrastructure
and development program. contracts provides that:
o It was designed to provide the o “The program of work shall include, among
management a periodic reporting of current others things, estimates of the work items,
status and an outlook for the future on quantities, costs and a PERT/CPM network
meeting approved plans and schedules. of the project activities… in the preparation
o It answers the questions such as: “Is this a of the bidding documents, the government
feasible schedule? And what are the shall make and estimate of the actual
probabilities of making it?” number of working days required to
• Although PERT and CPM were developed complete the project through PERT/CPM
independently, yet, they have a great deal in analysis of the project activities and
common. Users adopted certain features from corrected for holidays and weekends.”
one technique for use with the other.
o PERT originally stressed probabilistic
activity time estimate because the field in

AR Specialization 03: Construction Management | Page 15 of 17

 • On January 27, 1968, former president 5. PERT/CPM indicates the earliest starting date
Ferdinand E. Marcos issued Memorandum for each work operation and sub-contracts for
Circular No. 153 which provides that: supply and delivery of materials.
o “in order that the performance discipline on 6. It shows the most advantageous scheduling
the field could be controlled and easy for all operations. This gives planning
reporting system, could be made to information as to time and cost in choosing
facilitate the monitoring, evaluation, methods, equipment, crew and work hours.
inspection completion, of infrastructure 7. It offers a means of assessing the effect on the
projects, all heads of departments and chief overall project variations in one operation such
of bureaus and offices concerned are as change orders.
hereby required to change the old system 8. In case of change order where the owner
of preparing work programs of said projects would not want to extend the contract time,
from the Gantt Chart (Bar Type) to the PERT/CPM offers a means of re-scheduling
PERT/CPM network. Strict compliance the operations but still to be completed at the
herewith is enjoined.” least increase in cost.
9. With the critical path schedule as revised to
Three Phases of PERT/CPM reflect the change order, any claim if any, for
1. Planning the additional payment will be understood both
2. Scheduling by the owner and the contractor.
3. Control-Monitor 10. In case of serious delay, due to weather,
late material or equipment delivery, the
Planning network can be revised at that stage and new
computation is made to determine the new
• Planning is defined as determining the critical operation if any and revised float times
relationship between the work operation and determined for the non-critical operations.
the sequence in which they are to be
performed. Scheduling
• Scheduling or sequence involves distribution
of work time to each work operation and • Scheduling is defined as the process of
determining when to start and when to finish. translating the narrow diagram into time table
of calendar days.
The Critical Path Method (CPM) offers the solution • This is done by the day date table converting
through systematic approach. The specific working days into calendar days which permits
information provided by the CPM are enumerated the inclusion of weekends, holidays, weather
as follows: and other time lost.

1. PERT/CPM pinpoints the particular work The PERT/CPM diagram should be updated
operations whose completion times are periodically to account for:
responsible for controlling the complete date. 1. Time discrepancies
2. It provides a means of speeding up a project 2. Deliveries
without excessive costs for overtime. Without 3. Weather
the use of PERT/CPM when speeding up the 4. Change orders
project overtime expenditures may be in total 5. Unexpected events or conditions
waste.
3. It gives a time leeway or float available for Updating of the diagram is based on the number of
each of the non-critical work operations. The days the project is out of schedule.
information on float time will give the project
manager that opportunity to maneuver in their Controlling and Monitoring
planning and control of the operations.
4. It establishes time boundaries for operations Flexibility and updated re-computations brought
with possibilities of shifting resources, about by changing conditions is the key to a
equipment and manpower to meet time successful network programming. To keep the
requirements. schedule more up to date and meaningful, the
following output should be done by the contractor.

AR Specialization 03: Construction Management | Page 16 of 17

 • The contractor is supplied with time status 3. Changes as to duration, description, trade
showing the overall status of the project in indicators, cost estimates or resource
general and in particular. estimates.
• The contractor is provided with revised 4. Actual starting dates
schedules which reflect the actual work 5. Actual finishing dates
conditions and the project status.
• The contractor is supplied with cost status The Output Phase consist of the following:
reports showing how much money is being 1. Time status report
disbursed for what type of expenses. 2. Revised schedules
• The contractor should be supplied with those 3. Revised Bar Charts/Arrow Diagram or
reports as frequently as desired or required to Network
maintain control over the project. 4. Revised resource analysis
5. Revised cash flow predictions
6. Cost status reports
Key Notes in PERT/CPM:
There are three major reasons for construction
In the Planning Phase, there are five inputs that
failure:
can be obtained:
1. Unbalanced organization due to lack of
1. A network diagram defining the activities in the
planning and scheduling
project.
2. Lack of financial planning
2. The duration of activities.
3. Poor cost control
3. Cos estimates of the activities for monitoring
cost, cash flow requirements.
4. Resource estimates
Next Topics:
5. Trade indicators (responsibility) for activity
grouping.
• Contractor selection phase
• Project mobilization phase
From the Schedule Phase, there are four output
• Project operations phase
that can be obtained:
1. The schedule of activities in the network
showing the following:
a. The Critical Activities
b. The Earliest Start date for each activity
c. The Earliest Finish date for each activity
d. The Latest Start date for each activity
e. The Latest Finish date for each activity
f. The Float which refers to the amount of
extra time available for an activity.
2. A Bar Chart or a Time Scaled Network (arrow
diagram network for the project)
3. A Resource Analysis showing the number
and kind of resources, manpower, equipment
etc., that are required for each day of the
project.
4. A Cash Requirement prediction indicating
how much cash to be disbursed for the job
and the amount of money that will be
collected as a result of work accomplishment.

The Control Monitor Phase uses actual data

which includes:
1. Additions to the project – this refers to the new
activities
2. Deletion from the project

AR Specialization 03: Construction Management | Page 17 of 17