PLANNING

 Planning- a thinking process that determines the course of action to be taken to achieve a specific
purpose/goal
 Planning involves the breakdown of the project into definable, measurable, and identifiable
tasks/activities, and then establishes the logical interdependences among them.
“THERE IS NEVER A PLAN TO FAIL, BUT FAILURE IS GUARANTEED WITHOUT PLANNING”
 Generally, planning answers these main questions:
 What is to be done?
 How to do it?
 Who does it?
 When must it be done
 How much will it cost?
The answers are then used to decide when to employ the available resources of men, materials,
machines, methods and money.
Then decisions are made in the light of objectives and the best standards of cost, profit and time.`
TASK Example: Question 1 Example: Question 2 Is there an alternative?

Material What is needed? Why that much? Would other materials

do?

Machine and work space Where is the work to be Why there? Can it be done
performed? anywhere else?

Method How should the work be Why that way? Would another way be
performed? more effective?

Men Who is to be used? Why them? Could anyone else be

used?

Money What money is required? When will it be required? Can other arrangements
be made?

Example of a planning technique

 Four main steps:
 Performing breakdown of work items involved in the project into activities.
 Identifying the proper sequence by which the activities should be executed.
 Activities representation.
 Estimating the resources, time, and cost of individual activities.

Planning Objectives
Page 10

It is broadly accepted that among the main characteristics of an effective plan are that:
 it is based on clearly defined objectives
 it is simple
 it establishes standards
 it is flexible
 it is balanced
 it uses available resources to the utmost.
Planning is an executive function which helps to provide purpose and direction for the members of an
organisation.
Obstacles to effective planning
All of us are used to making plans, even if it's just for a future social gathering or a yearly vacation. However,
planning done by an individual is probably going to be easier than planning done by even a small builder, let alone
a company with locations all over the world.
External forces such as laws, government regulations, trade associations and the actions of competitors may
impede or influence the effectiveness of planning.
Managers frequently fall short of the planning standards required for maximum productivity. Given that many
circumstances that result in inadequate planning are outside of their control, this is not wholly their fault. Managers
may, however, make their planning better by first comprehending the challenges and then taking deliberate action
to lessen their impact.

Unforeseen and unpredictable events

In construction, as in all human endeavours, it is impossible to predict with absolute precision everything that
could have negative effects on our plans. For instance, the consequences of a cyclone might severely impair the
schedule of a project.
Planning can therefore only be done based on what is known at the time and changed (if necessary) by what one
can predict or judge will happen in the future.
Because foresight is not a skill that everyone possesses, it is frequently mentioned as one of the desirable traits of
the successful executive.
Mental factors
A challenging type of mental process is needed for planning, including the capacity to organize a wide range of
concepts and recognize numerous potential impacts in combination. Thought and effort are both things that not
everyone enjoys. Planning frequently necessitates the uncomfortable consideration of unfavorable and undesired
options and prompts thoughts about past mistakes. For individuals who have an optimistic attitude, planning
necessitates taking potential bad outcomes into account as well.
The executive who is action-oriented by nature may not have a strong preference for sitting at their desk and
reflecting. Furthermore, folks who don't respect intellectual endeavour occasionally mock it.
Although it may be challenging to find one in the construction sector, it is generally better to create in a comfortable
and relaxed environment.
Realize that planning is not a "frill" or luxury that only big businesses with deep pockets can afford; on the contrary,
planning is a crucial component of any business that wants to run effectively. It demonstrates nothing that some
businesses may function without employing sound planning strategies. If they did plan, the outcome would be more
favourable.
One of the most crucial instruments for cost-effective building is planning, and there is always room for
improvement. Despite their success, current approaches can never be considered to be entirely correct. They just
represent the greatest attempts available at the time. The methods might get better as time goes on.
 There are 3 kinds of Planning:
 Pre-Tender
 Pre-Contract
 Contract Planning

Pre-Tender Planning
 A duration of 21 days min is allowed between tender advert and tender opening.
 What happens during that time? Pre-Tender planning
 Tendering is a vital part of the company’s activities. It is therefore important to plan the tender properly
and to carry out a systematic scrutiny of the tender documents - irrespective of project size,
contract/tender form and the extent of ‘own production’.
 Objectives:
 Reduce, or eliminate the risk of inaccurate opinions influencing decisions which affect the pricing
of the Tender
 To identify construction methods
 To assess method related items which affect tender price
 To aid the build up of contract preliminaries and plant expenditure
 To aid the tendering process
 (See tender advert)
 Pre-Tender Planning Steps:
1. Decision to tender:
Tender Qualification: CIDB Grading, BBBEE, Tax Clearance certificate, H&S certificates etc.
 Site visit/briefing- compulsory or not? (See briefing example)
 Technological factors
 Contractual factors- Upon reception of the tender documents, the contractor analyses the documents
in order to identify any conditions that may not be expedient to the main contractor.
 Legal factors- zoning, Heritage sites etc. (regulations in the area)
 Economical factors- is it worth investing in this project (competitiveness)
 Financial factors- profit, availability of reserve funds
 Resource factors- check availability of resources and what can be done
 Public relations- so company can be known
 Political factors- what is governments focus?
any possibility of strikes?
any possibility of clashes with community organisations?

Assignment: CIDB grading, BBBEE (how and why?)

2. Pre-Tender meeting:
 Planning and phasing of activities of pre-tender planning phase
 Attendance is determined by company size (one/various departments)
 Degree of interest in project is determined in this meeting
 Full treatment
 Detailed treatment
 Routine treatment
 Minimum treatment
 Responsibilities of personnel in tender preparation
Page 14 (emphasis on what is to be done and not necessarily on who does it)

3. Site visit report

(See example of site report)
 Provides potential bidders with an opportunity to view the project site and become familiar with existing
conditions.
 The building site arrangement is an important aspect of the contractor’s work. The arrangement affects
work progress, safety conditions, construction logistics and the surrounding environment. The great
variety of construction work takes place in very different surroundings. It is therefore important to carry
out a thorough inspection of the building site conditions, conditions on neighbouring plots, access
conditions and access possibilities for equipment etc.
Ground conditions:
1. Scrutiny of levels:
Present ground level
Future ground level
Level of topsoil excavation
Top level of the stable stratum
Bottom level of foundation Top level of the solid stratum Water table)
This information should be noted in a detailed cross section.
2. Soil carrying capacity
Soil strength parameters and carrying capacity
3. Water table
Lowering of the water table?
4. Draining of surface water
Drainage needs, collecting wells and pumping.
5. Excavation
Slope inclination, conditions of neighboring plots. Is soil suitable for backfilling?
6. Building site
Temporary roads, substructures for storage sheds and site huts
7. Environmental problems
Handling polluted soil, pollution degrees.
4. Enquiries to Sub-contractors and Suppliers
Look for Cover page (validity period etc.)2022
Sub-contractors - Page 16
Suppliers – page 17

5. Method statement
 It describes how each work task is to be performed and analyses the different methods of doing that
item of work.
 It is submitted together with other tender documents when tendering for a project.
 It becomes part of the contract documents that serve as a basis for agreement between the client and
contractor when tender is awarded.
 Important for programming pricing
 Determining plant and
 Labour requirements
 Objectives of method statement:
 Predict anticipated project quality, risk, health and safety and environmental requirements.
 Assess the adequacy of the stipulated project time stated by the contractor and contractor’s
knowledge of planning
 Gives the client an ability to assess the contractor’s knowledge/know-how of the project
 Determines how realistic the contractors bid is
 Record agreed intentions with the client
 Critical aspects of method statement preparation:
 The methodology i.e. a brief description of how the activity is to be done
 Duration estimation
 Operational Sequence (Networks)
 Work program (Gantt/Bar charts)
 Labour/plant requirement (resources)
 Cost/Pricing (most cost-effective method)
 Pre-requisites of a method statement
 Scope of work(BOQ)
 Contract/work duration
 Site inspection report
Site location, resource availability, area regulations, level of skills, soil conditions etc
 Work productivity/output rates
 Method statement must meet the project performance requirements of:
 Quality (specified standards)
 Time (within schedule)
 Cost (within budget)
 Health, safety and environment record (safety first)
 Risk mitigation
 Construction approach/method
 2 main types:
 Labour intensive/based method- By hand using small tools/equipment
 Capital/equipment intensive method- Mechanically using heavy plant & equipment
 Ensure Compliance of method statement with the following:
 Contract Method Specifications
SANS 2001 Series
 Contract Conditions:
GCC 2010
 Construction health & safety standards
OHSA/Construction Regulations
 Construction code of practice
(SAFCEC/CIDB/MBSA/NHBRC/EPWP)
“Successful projects are those with zero lost time and injuries at completion”

 Management techniques used to prepare a construction method statement are the basic planning
functions of:
 Planning
 Forecasting
 Organising
Method statement preparation:
 Traditionally the method statement was presented in tabular form with seven columns, however
nowadays the number of columns is determined by the use and purpose of the method statement.
 (may include health and safety requirements, identified risks etc.)
 See table on Page 18
 This made up of a sequence of construction Operations
 Example: Activity: pipe trench excavation
 Construction method- labour intensive
 Construction operations:-E.L.H.U.D.
Excavate
Load
Haul
Unload
Dispose
 Activity:
 Excavation and dispose at a distance not exceeding 50m
 Method statement/Methodology: 3 operations:
 Exc. by hand using hand-held tools such as shovels/spades, fork/fork hoe.
 Load exc. material by hand into wheelbarrows.
 Haul & dispose by wheelbarrows at a distance not exceeding 50m.
Labour Output rates Per Hour for Construction Operations (Reproduced)
Example of method statement:
1. Excavation
Description: Excavate trench to receive foundation wall footings (10m 3 assumption)
Methodology:
Excavation
Excavate manually using hand-held tools such as picks, shovels etc. (soil quality)
or
Excavate using plant such as back-actor (depending on scope and volume of work)

Disposal
Load excavated material manually or mechanically into mechanical transport (dumpers, lorries)
or
Manual transport (wheelbarrow)
 METHOD STATEMENT
CONTRACT TENDER NO: XXX
Operation No. Operation Quantity Method Sequence of Operations Plant & Labour Output Labour
mark area to be excavated,
excavate using picks and
shovels. Excavated material to
be heaped next to trench, 1Skilled
manual excavation for loaded into wheelbarrows and pick, shovels, and 8
1 Excavation 10m3 trenches transported to dump site wheelbarrows 2.7m3/h unskilled
2.
Concrete foundation footing
Description: Vibrated reinforced concrete 1:2:4 in foundation footing
Methodology: concrete operations will include the following
batching
Mixing
Transporting
Placing and
Curing
 METHOD STATEMENT
CONTRACT TENDER NO: XXX
Operation No. Operation Quantity Method Sequence of Operations Plant & Labour Output Labour

batch cement and other

aggregates manually with
use of head pans; mix
constituents using a
concrete mixer; transport
the concrete mixture
manually using
wheelbarrows or head pans,
mechanically with use of Head pans,
concrete pumps and hoppers concrete mixer,
attachedto the tower crane; wheelbarrows,
place manually using concrete pumps,
tamping rods or hoppers, tamping
mechanically with aid of rods, poker 2 Skilled
poker vibrator; and cure batching, mixing, transporting, vibrator, water and 10
1 Concreting 10m3 manually using water hose placing and curing hose 2.7m3/h unskilled
Class exercise: Draw up a WBS, Method Statement and a Gantt chart for the following project.
Scope Of Works:
Excavate a trench 500mm wide with an average depth of 2.5m in soft material. A 400mm pipe is to be laid
in 2.5m sections on 50mm bedding. The trench is then backfilled using the excavated material. Spoil
material is to be ridden away. Trench is 500m long.
Contract Period: 30 days
Site Inspection Report: Availability of cheap labour, soft soil, medium dense bush etc
Construction Method/Approach: Labour Intensive
See drawing
Finish as H/W
Activity No Activity Quantity Resource type, Work output rate
capacity no.
1 SITE Clearance 250m2 1 lab 350m2//md

2 Setting out 500m 12 gangs 15m/gd

3 Excavation 625m3 25 lab 5m3/md

4 Pipe bedding 12.5m3 2 lab 5m3/md

5 Pipe laying 500m 5 lab 19m/md

6 Backfill & compaction 550m3 25 lab 3m3/md

7 Surface reinstatement 250m2 25 lab 3m2/md

WBS
 Mobilisation+ Site Establishment
 Site Clearing
 Setting Out
 Excavation
 Pipe Bedding
 Pipe laying
 Backfill
 Compaction
 Surface Reinstatement

Activity Activity Work Resource Method/ Resource Resource Resource Duration

No quantity Type, Approach Output required available (C/D)
(A) Capacity Rate (C=A/B) (D)
No (B)
6. Build up of Estimates
 Cost estimates build-up pre-requisites
 Scope of work(BOQ)
 Site inspection report
 – Site location, resource availability, area Regulations, level of skills, soil conditions etc
 Price enquiries(sub-contractors/suppliers)
 Method statement
 Gantt chart
 Cost estimate build-up
 Section A- preliminaries & General items(P&G’s)
 Section B- the Works(“permanent Works”)
 Build up of the works(“permanent”) estimate-B
 For each activity/work item estimate the:
Labour cost
P&E cost
Material cost
Direct cost =Labour cost + P& E cost + material cost
7. Pre-Tender Programme
 Consists of:
 Preparation of estimate
 Preparation of programme
 Programme considerations:
 Start of project and work flow
 Site layout facilities
 Site access
 Bulk items
 Plant and its location on site
8. Build up of Preliminaries
The section in the bills of quantities which groups together items which are necessary for the contractor to
complete the works, but will not actually become part of the works, such as scaffolding, plant, water, the cost
of power to the site and other site overheads.
 P&Gs Build-up - A
 Pre-construction expenses
 Preparatory works expenses
 Other site overheads.
 Provisional sums
 ADD profit & overheads
They are claimed by the contractor on a pro-rata/proportion basis
 P&Gs Build-up - cost items
 Fixed Cost/Charge/ Value related Items
 Time-Related Items
 Specified Provisional Items/ Sums
 Prime costs (PC) Items
 Day works Items
 Temporary Works/Items
 Relocation of Existing Services
 Health & Safety( OHSA) Items
 Environmental Management Items
 Installation & Commissioning Items
Fixed Cost/Charge/ Value related Items
 Contractual Requirements
Cost of Insurance of works
Cost of performance bond and surety
 Establishment +de-establishment of Site facilities;
Furnished Site offices, ablution facilities etc. Contractor
Furnished Site offices, ablution facilities etc. Engineer
Name Boards
 Small plant/tools
 Final clearance and hand over
 Priced as a LUMPSUM

A 'time-related charge' is for work, the cost of which is to be considered dependent on duration.
This is as opposed to a 'fixed charge', which is for work, the cost of which is to be considered independent
of duration.
Time-Related Items
 O& M of site facilities( Contractors and Engineers offices)
 Site Supervision(Supervisor)
 Security/Lighting
 Welfare and safety provisions( Toilets/Kitchen)
 Site transport services/Travel Expenses(Operators)
 Site accommodation
 Water
 Head office charges,
 Employment of CLO/Labour Officer
 Add profit & overheads(%) on employment of CLO/Labour officer
 Priced on a TIME-BASIS(price per month/day/weeks)
Specified Provisional Sums( SPS)
 Are estimates of additional work that have a high likelihood of being required but were not
quantified at the time the Bill of Quantities was drawn up.
 Cost of work which at the tender stage has not been sufficiently defined to enable it to be priced
by tenderers. Eg. water supply, piling etc.
 Cost of work to be done by specialist firms/sub-contractors eg. geotechnical investigations by
geotechnical engineers, Setting out, supply
 of Mechanical plant and hoisting, Scaffolding and gantries
 Provisional sums are a way of adding some extra money to the construction budget.
 The work itself is only undertaken on instruction from the Engineer.
 It may or may not be carried out by the contractor
 QC & QA Inspections and testing
 A LUMPSUM is written into the Bill.
 Contractor only tenders a % of the Lumpsum for overheads, attendance charges and profit.
Prime costs (PC)
 Are fixed sums added to the Bill to compensate for delays incurred on items (like special
materials, services by local authorities, items with a long delivery lead time) normally
ordered by the Client and that are to be paid for through the contract and may be installed
by the Contractor.
 The Prime Cost is shown as a LUMPSUM in the Bill
 Contractor is asked to tender a % of the lumpsum to cover his overheads, charges and profit+ a sum
for the transport, plant and labour needed to install the item.
Day works
 Method of valuing work on the basis of time spent by the workmen, materials used and the
plant employed
 Is a work or material item which cannot in terms of the contract be measured in terms of
dimensions.
 Has to be measured in terms of time and cost eg. dewatering
 A day work schedule is often included.
 – A schedule of rates(cost/unit) for the various types of labour, plant and materials that may
be used.
 The Contractor is asked to price the day work schedule, or a % (to cover his overheads,
charges and profit) to be added to actual costs of labour, materials and plant.
Temporary Works/Items
 Coffer dams and access roads
 Notice Boards
 Road Signs
 Fencing
 Temporary utility lines connections
 Temporary services and reinstatement
 Public Services – electric, gas, telephones, fees and rates
 Temporary water installations
 Priced as a LUMPSUM

Relocation of Existing Services

 Cost of Excavation by hand in soft and intermediate material to expose services.
 Priced as a LUMPSUM
Health & Safety( OHSA)
 Fixed charge Costs- OHS Plan
 Time related Costs- OHS Monthly Audits
 Placed as a LUMPSUM or TIME-BASED inthe Bill.
 Contractor provides a % of the lumpsum or time-based for Profit, attendance and Overheads

Environmental Management
 The cost of additional works not covered elsewhere required to ensure compliance with the EMP
and Record of Decision
 Priced as a LUMPSUM

Installation & Commissioning

 Installation & commissioning of all mechanical equipment
 Priced as a LUMPSUM
 The following preliminary items are affected by the location of the site
 Travelling expenses for operatives
 Provision of site transport and vehicle for site manager’s use
 Access problems associated with undertaking the works
 Temporary hard-standings for plant
 Extent of temporary access roads
Class Exercise
Profit and Overheads mark-up( 25%)
Contingencies (15%)
Price Escalations (10%)
Discount offer (5%)
9. Adjudication of Estimate
 Estimate is converted into a “tender”
 Profit and Overheads are added to arrive at tender figure/price depending of category of contract (pages13-
14)
 Any market and/or policy changes must be reviewed and changes made to estimate before final mark-up is
applied to estimate.

10. Analysis of Tender Performance

 Record keeping and analysis of all tender results must be done so that company can know of any changes
required during estimating, mark-up, P& G’S etc.
See Tender results doc.
Look for Tender extension doc (2022)
Documents to keep in Pre-Tender Planning
See list on page 22
Pre-Contract Planning (page 23-32)

 Period between contract award and commencement of work on site

 Contract master program- main construction activities carried out. Copies of this programme sent
client’s representative, who will use it for monitoring contractor’s progress during construction.
 Target programme- compressed version of contract master programme.
 Contractors internal program
 More detailed

Reasons for pre-contract planning

 To provide an outline plan or strategy for the project

 To comply with contract conditions
 To establish a construction sequence
 To identify key project dates
 To highlight key information requirements
 To enable assessment of contract budgets and cumulative value forecast
 To schedule key dates with respect to key material and subcontractor requirement
 Elements to look into during this phase:
 Detailed work program. Use Precedence Diagram, CPM (critical path method) etc
 Preparation of insurances
 Intake of foreman
 Call in tender for specialised jobs
 Prepare materials and suppliers, hiring of staff based on site
 Acquire name, address and contacts of local authorities
 Prepare working
 Prepare equipment. Plant and equipment planning
 Design of temporary structures
Contract Planning

 From site possession till completion (defects liability period)

 Further development of master program
 Detailed short term weekly, fortnightly program by main contractor
 To maintain control and ensure project completes on time within the cost limits established at tender
stage
 Subcontractors submit their work programs for discussion and approval by main contractor
 Any delays or disruptions will be recorded and program will be revised accordingly and updated
constantly
 Elements to look into during this phase
 Activities must start as planned
 Weekly progress must be monitored. In terms of cost usage, time and quantity. Compare current
progress to standards ones as stated in the contract
 Daily, weekly and monthly reports must be prepared
 Resource usage must be controlled
 Control quality according to specifications
 Involves coordination and discussion between parties
 Contract administration
 Safe working conditions must be adhered to (H& S plan)
 Corrective action must be taken for problematic activities
  Progress claims must be done
 Payments to suppliers and subcontractors
 Activities during project close down

Reasons for contract planning

 Monitor the master program on a daily, weekly and monthly basis

 To plan site operations in detail in a short plan manner
 To optimise and review resources
 To keep the project under review and report on variances
SUMMARY