CONSTRUCTION METHODS

CONSTRUCTION is a general term

meaning the art and science to form objects,
The typical key project stakeholders you'll
systems, or organizations, and comes from
find in any project will include some of the
Latin constructio and Old French
following:
construction.
 Customers or end users
CONSTRUCTION MANAGEMENT
(CM) is a professional service that uses  Project manager
specialized, project management techniques  Project team members
to oversee the planning, design, and  Project sponsor
construction of a project, from its beginning  Investors
to its end.  Executives

PROJECT MANAGEMENT (PM) is the

 Resource managers
process of leading the work of a team to PROJECT MANAGEMENT
achieve goals and meet success criteria at a
TRIANGLE or “TRIPLE
specified time. The primary challenge of
project management is to achieve all the CONSTRAINTS”
project goals within the given constraints. 1. Time
2. Cost
WHAT IS A STAKEHOLDER IN
3. Scope
PROJECT MANAGEMENT?
MANAGEMENT TO BE
Stakeholders are those with any interest in
your project's outcome. They are typically EFFECTIVE SHOULD BE
the members of a project team, project 1. SYSTEMATIC
managers, executives, project sponsors, 2. SCIENTIFIC
customers, and users. Stakeholders are 3. HUMANISTIC
invested in the project and who will be
affected by your project at any point along WHY IS PROJECT
the way, and their input can directly impact MANAGEMENT IMPORTANT?
the outcome.
Project managers will help your
 Project stakeholders in general can organization:
be single individuals or entire
 have a more predictable project
organizations who are affected by the
planning and execution process
execution or outcome of a project.
 adhere to project budgets, schedules,
 Key project stakeholders, however, and scope guidelines
are those stakeholders who have the  resolve project roadblocks and
influence and authority to dictate escalate issues quicker and easier
whether a project is a success or not.  identify and terminate projects that
These are the people and groups do not have relevant business value
whose objectives MUST BE
 become more efficient
SATISFIED.
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 improve collaboration across and 1. Specifying project objectives and

within teams identify and plan for plans including delineation of scope,
risks budgeting, scheduling, setting
performance requirements, and
CONTRACTORS are assigned to a selecting project participants.
construction project during the design or 2. Maximizing the resource efficiency
once the design has been completed by a through procurement of labor,
licensed architect or a licensed civil materials and equipment.
engineer. 3. Implementing various operations
GENERAL CONTRACTOR, they are through proper coordination and
sometimes known as the direct contractor. A control of planning, design,
DIRECT CONTRACTOR is a party who estimating, contracting and
contracts with and is hired directly by the construction in the entire process.
owner of the property. Another name for this 4. Developing effective
is the PRIME CONTRACTOR. communications and mechanisms for
resolving conflicts.
SUBCONTRACTOR, they are individuals
or a business that signs a contract to perform SEVEN TYPES OF
part or all the obligations of another's CONSTRUCTION
contract.
1. AGRICULTURAL: Typically,
A subcontractor is a company or person economical buildings, and other
whom a general contractor hires to perform improvements, for agricultural
a specific task as part of an overall project purposes. Examples include barns,
and normally pays for services provided to equipment and animal sheds,
the project. specialized fencing, storage silos
and elevators, and water supply and
A CONSTRUCTION MANAGER should
drains such as wells, tanks, and
have the ability to handle:
ditches.
 Public safety 2. RESIDENTIAL: Residential
 Time management construction includes houses,
 Cost management apartments, townhouses, and other
 Quality management smaller, low-rise housing, small
 Decision making office types.
3. COMMERCIAL: This refers to
 Work drawings
construction for the needs of private
 Human resources
commerce, trade, and services.
4. INSTITUTIONAL: This category
is for the needs of government and
other public organizations.
FUNCTIONS OF 5. INDUSTRIAL: Buildings and other
CONSTRUCTION constructed items used for storage
and product production, including
MANAGEMENT chemical and power plants, steel
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mills, oil refineries and platforms, 1. LOW-BID SELECTION: This

manufacturing plants, pipelines, and selection focuses on the price of a
seaports. project. Multiple construction
6. HEAVY CIVIL: The construction management companies submit a bid
of transportation infrastructure such to the owner that is the lowest
as roads, bridges, railroads, tunnels, amount they are willing to do the job
airports, and fortified military for. Then the owner usually chooses
facilities. Dams are also included, the company with the lowest bid to
but most other water-related complete the job for them.
infrastructure is considered 2. BEST-VALUE SELECTION: This
environmental. selection focuses on both the price
7. ENVIRONMENTAL: and qualifications of the contractor’s
Environmental construction was submitting bids. This means that the
part of heavy civil, but is now owner chooses the contractor with
separate, dealing with projects that the best price and the best
improve the environment. Some qualifications. The owner decides by
examples are water and wastewater using a request for proposal (RFP),
treatment plants, sanitary and storm which provides the owner with the
sewers, solid waste management, contractor's exact form of scheduling
and air pollution control. and budgeting that the contractor
expects to use for the project.
3. QUALIFICATIONS-BASED
OBTAINING THE PROJECT SELECTION: This selection is used
when the owner decides to choose
1st STEP: BIDS the contractor only on the basis of
their qualifications. The owner then
A bid is given to the owner by construction
uses a request for qualifications
managers that are willing to complete their
(RFQ), which provides the owner
construction project. A bid tells the owner
with the contractor's experience,
how much money they should expect to pay
management plans, project
the construction management company in
organization, and budget and
order for them to complete the project.
schedule performance. The owner
1. OPEN BID: An open bid is used for may also ask for safety records and
public projects. Any and all individual credentials of their
contractors are allowed to submit members. This method is most often
their bid due to public advertising. used when the contractor is hired
2. CLOSED BID: A closed bid is used early during the design process so
for private projects. A selection of that the contractor can provide input
contractors is sent an invitation for and cost estimates as the design
bid so only they can submit a bid for develops.
the specified project.
3RD STEP: PAYMENT AGREEMENT
2ND STEP: SELECTION METHODS
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1. LUMP SUM: This is the most 2. PLANNING: This phase includes

common type of contract. The developing a roadmap for everyone to
construction manager and the owner follow.
agree on the overall cost of the
3-4. EXECUTING & MONITORING: In
construction project and the owner is
this stage, the project team is built, and
responsible for paying that amount
deliverables are created. Project managers
whether the construction project
will monitor and measure project
exceeds or falls below the agreed
performance to ensure it stays on track.
price of payment.
2. COST PLUS FEE: This contract 5. CLOSING: The project is completed, a
provides payment for the contractor postmortem is held, and the project is
including the total cost of the project transferred to another team who will
as well as a fixed fee or percentage maintain it.
of the total cost. This contract is
beneficial to the contractor since any
additional costs will be paid for, even PROJECT STAGES
though they were unexpected for the
owner. 1. Feasibility and design
3. GUARANTEED MAXIMUM Feasibility and design involve four
PRICE: This contract is the same as steps: programming and feasibility,
the cost-plus-fee contract although schematic design, design
there is a set price that the overall development, and contract
cost and fee do not go above. documents. It is the responsibility of
4. UNITPRICE: This contract is used the design team to ensure that the
when the cost cannot be determined design meets all building codes and
ahead of time. The owner provides regulations. It is during the design
materials with a specific unit price to stage that the bidding process takes
limit spending. place.
2. Conceptual/programming and
feasibility the needs, goals, and
objectives must be determined for
the building. Decisions must be
CONTRACT is an agreement between 2 made on the building size, number of
or more competent parties for certain acts to rooms, how the space will be used,
be performed or refrained from which has and who will be using the space.
been arrived at in such a manner, set forth in This must all be considered to begin
such form, and is of such content that it has the actual designing of the building.
enforceable legal effect. This phase is normally a written list
of each room or space, the critical
WHAT ARE THE PHASES OF information about those spaces, and
PROJECT MANAGEMENT? the approximate square footage of
1. INITIATING: The goal for this phase is each area.
to define the project.
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3. Schematic design: Schematic project manager as well as the

designs are sketches used to identify superintendent with the details of the
spaces, shapes, and patterns. construction contract.
Materials, sizes, colors, and textures 3. Superintendent: It is the
must be considered in the sketches. superintendent's job to make sure
This phase usually involves everything is on schedule including
developing the floor plan, elevations, flow of materials, deliveries, and
a site plan, and possibly a few equipment. They are also in charge
details. of coordinating on-site construction
4. Design development (DD): This activities.
step requires research and 4. Field engineer: A field engineer is
investigation into what materials and considered an entry-level position
equipment will be used as well as and is responsible for paperwork.
their cost. During this phase, the
drawings are refined with PROCUREMENT
information from structural, The procurement stage is when labor,
plumbing, mechanical, and electrical materials and equipment needed to complete
engineers. It also involves a more the project are purchased. This can be done
rigorous evaluation how the by the general contractor if the company
applicable building codes will impact does all their own construction work.
the project.
5. Contract documents (CDs): Purchase orders: A purchase order is used
Contract documents are the final in various types of businesses. In this case, a
drawings and specifications of the purchase order is an agreement between a
construction project. They are used buyer and seller that the products purchased
by contractors to determine their bid meet the required specifications for the
while builders use them for the agreed price.
construction process. Contract Major Procurement Factors:
documents can also be called
working drawings. 1. Quality of the Materials
2. Quantity of the Materials
PRE-CONSTRUCTION 3. Time of Delivery
The pre-construction stage begins when the 4. Price of the Materials
owner gives a notice to proceed to the MATERIAL SUPPLY
contractor that they have chosen through the
bidding process. The contractor must determine his material
requirements and schedule the sequence of
1. Project manager (PM): The project its deliveries.
manager is in charge of the project
team. PURCHASE PROGRAM – planned
2. Contract administrator or schedule of deliveries.
Construction Manager (CM): The LATE ORDER = LATE DELIVERY =
contract administrator assists the DELAY
CONSTRUCTION METHODS

EARLY ORDER = EARLY DELIVERY = construction period. Progress payments are

DETERIORATION made to general contractors, subcontractors,
and suppliers as construction projects
PURCHASE ORDER FORM progress. Payments are typically made on a
Shall contain the ff. information: monthly basis but could be modified to meet
certain milestones. Progress payments are an
 Description of the materials important part of contract administration for
 Quantities required the contractor. Proper preparation of the
 Time and place of delivery information necessary for payment
 Unit Price processing can help the contractor
 Amount financially complete the project.

PURCHASING CLERK OWNER OCCUPANCY

Must have experience in identifying the Once the owner moves into the building, a
variety of materials and supplies in general warranty period begins. This is to ensure
demand for construction work including the that all materials, equipment, and quality
trade names, the quality and local practices meet the expectations of the owner that are
that govern the prices. included within the contract.

CONSTRUCTION

A CONTRACTOR PROGRESS
PAYMENT SCHEDULE is a schedule of
when (according to project milestones or
specified dates) contractors and suppliers
will be paid for the current progress of
installed work.
A project milestone is a management tool
that is used to delineate a point in a project
schedule. These points can note the start and
finish of a project, and mark the completion
of a major phase of work. Milestones can be
used to symbolize anything that has started
or finished, though it’s primarily used as a Module 2
scheduling tool.

PROGRESS PAYMENTS are partial

payments for work completed during a
portion, usually a month, during a
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