LESSON 1:

CONTRACTS, CONSTRUCTION
CONTRACTS AND SPECIFICATION
LEARNING OUTCOMES
At the end of this lesson, you can:
• Explain the importance of contracts in construction projects
• Identify the different types of construction contracts (e.g. lump sum, unit price, cost-plus)
• Describe the role of specifications in construction projects
• Identify the key components of a construction contract
• Explain the process of negotiating and executing a construction contract
• Recognize the importance of clear and concise language in construction contracts
• Understand the legal implications of a poorly drafted contract

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WHAT IS A CONTRACT?
WHAT IS A CONTRACT?
GENERAL TERMS
• Contract - written agreement between the Agency and the Contractor detailing the obligations of
each to perform the prescribed work. The contract includes the invitation for bids, proposal,
contract form, contract bonds, standard specifications, provisions, standard plans, change orders,
and supplemental agreements that are required to complete the work.
• Contract Bonds - approved security, on the Agency’s form, executed by the Contractor and its
surety or sureties, guaranteeing completion of the specified work.
• Contract Pay Item - specific work unit for which the contract provides a price.
• Contract Time - date by which work is to be completed or number of working days or calendar
days allowed to complete the contract.
• Award - agency acceptance of proposal.

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WHAT IS A CONTRACT?
GENERAL TERMS
• Change Order - written order to the Contractor detailing changes to the specified work quantities
or modifications within the scope of the original contract.
• Completion - contractor completes all specified work satisfactorily and executes and delivers all
required documents, certificates, and proofs of compliance.
• Delay - an event, action, force, or factor causing the work to extend beyond the specified
contract time.
Type of Delay
a. Excusable Delay
b. Compensable Delay
c. Non-compensable Delay
d. Non-excusable Delay

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TYPES OF CONTRACT
TYPES OF CONTRACTS
The following are the main types of traditional contract:

1. Lump sum contracts - Where the contract sum is known before work starts on site and the
contractor agrees undertake a defined amount of work for a specific amount.
2. Measurement contracts - Where the contract is assessed and re-measured as on a previously
agreed basis.
3. Cost reimbursement contracts - Where a contractor reimbursed on the basis of the prime cost
of labor, materials and plant plus an agreed percentage in addition to cover overheads and
profit.

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TYPES OF CONTRACTS
The following are the main types of traditional contract:

4. Design and build - In a number of variant forms, the contractor both designs and builds a
project.
5. Management contracts - Can take a variety of forms but involves a management contractor
managing the work although the contractor does not actually carry out any of the work. The
type of project will to a large extent influence the choice of contract.
6. Standard forms of contract - The contracts used in the construction industry that are not
bespoke documents; instead, they are standard documents or forms drafted by organizations
whose membership is drawn from industry and the professions. The forms should not be altered
or amended, as this practice can lead to major problems if the amended portion becomes the
subject of legal action; there is, however, provision within the standard forms to adapt them to
suit particular projects by completion of articles of agreement and appendices.

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CONTRACT IMPLEMENTATION GUIDELINES FOR
THE PROCUREMENT OF INFRASTRUCTURE
PROJECTS
IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

1. VARIATION ORDERS – CHANGE ORDERS/EXTRA WORK ORDERS

• Variation Orders may be issued by the procuring entity to cover any increase/decrease in
quantities provided that the cumulative amount of the positive or additive Variation Order does
not exceed ten percent (10%) of the original contract price.
• Change Order may be issued by the implementing official to cover any increase/decrease in
quantities of original work items in the contract.
• Extra Work Order may be issued by the implementing official to cover the introduction of new
work necessary for the completion, improvement or protection of the project which was not
included as items of work in the original contract.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

• Any cumulative positive Variation Order beyond ten percent (10%) of the original contract price
shall be subject of another contract to be bid out.
• In claiming for any Variation Order, the contractor shall deliver a notice giving full and detailed
particulars of any extra cost in order that it may be investigated:
a. within seven (7) calendar days after such work has been commenced pursuant.
b. within twenty-eight (28) calendar days after the circumstances or reasons justifying a claim for extra cost
shall have occurred.

• Failure to provide either of such notices in the time stipulated shall constitute a waiver by the
contractor for any claim.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

The preparation and submission of Variation Orders are as follows:

a) The procuring entity’s representative/Project Engineer believes that a Change Order or Extra
Work Order should be issued, he shall prepare the proposed Order.
b) The Head of the Procuring Entity or his duly authorized representative upon receipt of the
proposed Order shall immediately instruct the appropriate technical staff or office of the
procuring entity to conduct an on-the-spot investigation.
c) The technical staff of appropriate office of the procuring entity shall submit a report of their
findings and recommendations, together with the supporting documents.
d) The Head of the Procuring Entity or his duly authorized representative shall approve the
Change Order or Extra Work Order after being satisfied that the same is justified.
e) The timeframe for the processing of Variation Orders from the preparation up to the approval
by the procuring entity concerned shall not exceed thirty (30) calendar days.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

2. ADDITIONAL/EXTRA WORK COSTING

• For additional/extra works duly covered by Change Orders involving work items, the applicable
unit prices of work items original contract shall be used.
• For additional/extra works duly covered by Extra Work Orders, the unit prices of the new work
items shall be based on the direct unit costs used in the original contract (e.g., unit cost of cement,
rebars, form lumber, labor rate, equipment rental, etc.).
• Request for payment by the contractor for any extra work shall be accompanied by a statement.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

3. CONDITIONS UNDER WHICH CONTRACTOR START WORK UNDER VARIATION ORDERS

AND RECEIVE PAYMENTS
• Under no circumstances shall a contractor proceed to commence work under any Change Order or
Extra Work Order unless it has been approved by the Head of the Procuring Entity or his duly
authorized representative.
• However, the procuring entity’s representative/Project Engineer may allow the immediate start of
work under any Change Order or Extra Work Order under these conditions:
a) In the event of an emergency where the prosecution of the work is urgent to avoid detriment to public
service.
b) When time is of the essence.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

4. ADVANCE PAYMENT
• The procuring entity shall, upon a written request of the contractor which shall be submitted as a
contract document, make an advance payment to the contractor in an amount not exceeding
fifteen percent (15%) of the total contract price.
• The advance payment shall be made only upon the submission to and acceptance by the
procuring entity of an irrevocable standby letter of credit of equivalent value from a commercial
bank, a bank guarantee or a surety bond callable upon demand.
• The advance payment shall be repaid by the contractor by deducting fifteen percent (15%) from
his periodic progress payments
• The contractor may reduce his standby letter of credit or guarantee instrument by the amounts
refunded by the Monthly Certificates in the advance payment.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

5. PROGRESS PAYMENT
• Once a month, the contractor may submit a statement of work accomplished (SWA) or progress
billing and corresponding request for progress payment for work accomplished.
• The procuring entity’s representative/project engineer shall check the contractor’s monthly SWA
and certify the amount to be paid to the contractor as progress payment.
• The procuring entity shall deduct the following from the certified gross amounts to be paid to the
contractor as progress payment:
a) Cumulative value of the work previously certified and paid for.
b) Portion of the advance payment to be recouped for the month.
c) Retention money in accordance with the condition of contract.
d) Amount to cover third party liabilities.
e) Amount to cover uncorrected discovered defects in the works.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

6. RETENTION MONEY
• Progress payments are subject to retention of ten percent (10%) referred to as the "retention
money." If, after fifty percent (50%) completion, the work is satisfactorily done and on schedule,
no additional retention shall be made; otherwise, the ten percent (10%) retention shall be
imposed.
• The total "retention money" shall be due for release upon final acceptance of the works.
7. CONTRACT COMPLETION
• Once the project reaches an accomplishment of ninety-five (95%) of the total contract amount, the
procuring entity may create an inspectorate team to make preliminary inspection and submit a
punch-list to the contractor in preparation for the final turnover of the project.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

8. LIQUIDATED DAMAGES
• Where the contractor refuses or fails to satisfactorily complete the work within the specified
contract time, plus any time extension duly granted and is hereby in default under the contract,
the contractor shall pay the procuring entity for liquidated damages.
• A project or a portion thereof may be deemed usable when it starts to provide the desired
benefits as certified by the targeted end-users and the concerned procuring entity.
• To be entitled to such liquidated damages, the procuring entity does not have to prove that it has
incurred actual damages. Such amount shall be deducted from any money due or which may
become due the contractor under the contract.
• In no case however, shall the total sum of liquidated damages exceed ten percent (10%) of the
total contract price and for terminated contracts where negotiation shall be undertaken, the
procedures prescribed in the IRR shall be adopted.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

9. SUSPENSION OF WORK
• The procuring entity shall have the authority to suspend the work wholly or partly by written order
for such period as may be deemed necessary. The contractor shall immediately comply with such
order to suspend the work wholly or partly.
• The contractor or its duly authorized representative shall have the right to suspend work operation
on any or all projects/activities along the critical path of activities after fifteen (15) calendar
days from date of receipt.
• In case of total suspension, or suspension of activities along the critical path, the elapsed time
between the effective order of suspending operation and the order to resume work shall be
allowed the contractor by adjusting the contract time accordingly.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

10. EXTENSION OF CONTRACT TIME

• Should the amount of additional work of any kind or other special circumstances of any kind
whatsoever occur such as to fairly entitle the contractor to an extension of contract time, the
procuring entity shall determine the amount of such extension.
• No extension of contract time shall be granted the contractor due to
• ordinary unfavorable weather conditions, and
• inexcusable failure or negligence of contractor to provide the required equipment, supplies or materials.
• when the reason given to support the request for extension was already considered in the determination
of the original contract time.

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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

11. ACCREDITATION OF TESTING LABORATORIES

• To help ensure the quality of materials being used in infrastructure projects, the Bureau of
Research and Standards (BRS) of the DPWH, Department of Science and Technology (DOST), or
Department of Trade and Industry (DTI) shall accredit, in accordance with industry guidelines, the
testing laboratories whose services are engaged or to be engaged in infrastructure projects.
12. EVALUATION OF CONTRACTORS PERFORMANCE
• Subject and Scope All Procuring Entities implementing government infrastructure projects are
mandated to evaluate the performance of their contractors using the NEDA Approved
Constructors Performance Evaluation System (CPES) Guidelines for the type of project being
implemented.
• Submission and Dissemination of Evaluation Results All Procuring Entities implementing CPES shall
submit the results of their performance evaluation to the CIAP on a monthly basis or as often as
necessary.
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IMPLEMENTATION GUIDELINES FOR PROCUREMENT OF INFRA-PROJECT

13. OTHER RULES AND GUIDELINES

The rules and regulations for the other aspects of contract implementation shall be included in the
manuals to be issued by the GPPB, such as, but not limited to, the following:
a) sub-contracting;
b) interference with traffic and adjoining properties;
c) clearance of project site of obstruction;
d) inspection and testing;
e) daywork;
f) measurement of works; and
g) other implementation aspects.
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GUIDELINES FOR THE PROCUREMENT AND
IMPLEMENTATION OF CONTRACTS FOR
DESIGN AND BUILD INFRASTRUCTURE
PROJECTS
CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
1. SCOPE AND LIMITATION
• These guidelines shall govern the procurement and implementation of contracts for design and
build infrastructure projects and shall supplement applicable provisions of Republic Act No. 9184
(RA 9184) and its Revised Implementing Rules and Regulations (IRR).
2. PURPOSE
• These guidelines are formulated to determine the conditions for the use of the design and build
scheme for infrastructure projects and the procedures for the implementation thereof.
3. GUIDING PRINCIPLES
• The procuring entity, prior to resorting to the design and build scheme, should consider the
following advantages and disadvantages of said scheme:

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
3.1. ADVANTAGES
• There is a single point of responsibility for quality, cost, and schedule adherence, including the
risks related to design.
• The total design and construction time, as well as the final project cost, will be significantly
reduced.
• The designer-builder warrants to the procuring entity that the design documents are complete and
free from error.
• The procuring entity does not need to spend much time and money in seeing to it that the work is
done by the contractor exactly as indicated by the design documents prepared by the designer.

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
3.2. DISADVANTAGES
• Procuring Entities should, however, consider that in utilizing the design and build scheme for a
particular project, contractors are given too much discretion in determining the project cost and
there is difficulty in predicting its final cost until the actual commencement of construction.
• Considering that the extent of the integration of design and construction of the project is
exceptionally dependent on the contractor, there may be cases when the end-result may not be
exactly in accordance with what the procuring entity has required.

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
4. DEFINITION OF TERMS

a) Approved Budget for the Contract (ABC) - a lump sum amount that shall cover the cost of design and
construction works.
b) Bidding Documents for Design and Build Scheme - basically be criteria, the Bidding Documents for
infrastructure projects.
c) Conceptual Design - This shall describe the general idea of the procuring entity regarding the
completed facility.
d) Design and Build Projects - refers to infrastructure projects where the procuring entity awards a single
contract for the architectural/engineering design and construction to a single firm.
e) Performance Specifications and Parameters - The procuring entity shall define the required
performance specifications and criteria, and its means of measurement based on the operating outputs.
f) Preliminary Investigations - These shall include information on soil, hydrologic, and environmental
conditions that shall be used to define project design criteria.

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
4. DEFINITION OF TERMS

g) Preliminary Survey and Mapping - These shall determine boundaries and provide stationing along
control lines to establish feature and design criteria, location, and identify existing and future right-of-
way limits and construction easements.
h) Project Description - shall define the objectives, purpose, limitations or constraints, as well as the
allocation of risks between the procuring entity and the winning bidder.
i) Utility Locations - The procuring entity shall provide information on existing utilities in and around the
project’s area.

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
5. CONDITIONS FOR THE USE OF SCHEME
• The Design and Build scheme shall be applied under any of the following cases:
a) For flagship, priority and fast track projects that need to be completed on a tight completion schedule.
b) For infrastructure projects requiring advanced engineering or construction technologies.
c) For infrastructure projects where design, equipment, plant and construction can be provided exclusively by a
company
d) For small projects where there are previously approved drawings or standardized designs, and construction
methods will result in lower costs and higher quality projects.

• All design and build projects shall be included in the Annual Procurement Plan (APP) of the
procuring entity concerned and shall be subject to prior approval by the Head of the Procuring
Entity or his/her duly authorized representative.

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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
6. CREATION OF COMMITTEE
• The procuring entity may create a Design and Build Committee (DBC) composed of highly
technical personnel experienced in the field of architecture, engineering and construction in the
project to be bid.
7. PRELIMINARY DESIGN AND CONSTRUCTION STUDIES
• No bidding and award of design and build contracts shall be made unless the required
preliminary design and construction studies have been sufficiently carried out and duly approved.
i. Conceptual Design
ii. Performance Specifications and Parameters
iii. Preliminary Survey and Mapping
iv. Preliminary Investigations
v. Utility Locations
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CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
vi. Approved Budget for the Contract
vii. Proposed Design and Construction Schedule
viii. Minimum requirements for a Construction Safety and Health Program
ix. Tender/Bidding Documents, including Instructions to Bidders and Conditions of Contract.

8. DETAILED ENGINEERING REQUIREMENTS

• Upon award, the winning bidder shall be responsible for the preparation and submission of all
necessary detailed engineering investigations, surveys and designs.
• The procuring entity shall ensure that all the necessary schedules with regard to the submission,
confirmation and approval of the detailed engineering design.
• The procuring entity shall review, order rectification, and approve or disapprove – for
implementation only - the submitted plans within these schedules.
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CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACTS
WHAT IS A CONSTRUCTION CONTRACT?

Construction contract - is an agreement between the owner and the contractor and is enforceable
by law. The contractor is responsible for delivering the project in accordance with the plans and
specs. Every aspect of the project will be controlled by these documents, and the work of the
contractor will basically be judged by the written scope and specifications.

33
CONSTRUCTION CONTRACTS
CONTRACT DOCUMENTS
CONTRACT DOCUMENTS - are the medium through which the architect or engineer communicates
the design intent to the contractor.
Contract Documents included in construction contract as supporting documents.

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CONSTRUCTION CONTRACTS
DRAWINGS
DRAWINGS - are a graphical set of directives prepared by engineers in order to communicate the
wishes and desires of the owner. They are the single most important communication tool employed
by the industry to convey the work of the contract.
The drawing contains
1. Civil works drawings
2. Architectural figures drawings
3. Structural drawings
4. Electrical drawings
5. Mechanical drawings
6. Plumbing and Sanitary drawings

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CONSTRUCTION CONTRACTS
DRAWINGS
These drawings are numbered accordingly for easy reference. Most sets of drawings start with a
cover sheet providing general information about the project.
The cover sheet contains;
1. Location of the project
2. Vicinity maps and subdivision plans
3. Perspective drawing of the building
4. The city/municipal building officials in the area where project is located.

36
CONSTRUCTION CONTRACTS
DRAWINGS
Civil drawings - usually prepared by a civil engineer and describe all items of work associated with
the site. The site work includes grading, demolition, excavation, site utilities, streets, curbs, and
gutters and their details.
Architectural drawings - are prepared by the architect that usually constitute the bulk of the set. The
architectural work includes such things as floor plans, exterior elevations, and sections; door, window,
and finish schedules; and architectural details.
Structural drawings - The structural drawings identify the major components making up the structural
frame of the building, such as columns, beams, and girders.
Mechanical drawings - mechanical work splits between two major support components for any
building—the plumbing and the heating, ventilation, and air conditioning (HVAC). Fire protection can
also be included with the mechanical drawings.
Electrical drawings - The electrical work includes all of the rough wiring, transformers, and panel
boxes, as well as receptacles, switches, and light fixtures.
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CONSTRUCTION CONTRACTS
THE PROJECT MANUAL
PROJECT MANUAL - the second part of the contract documents. This is the part that is often
referred to as the specifications.
Documents that are include in the Project Manual;
1. The bidding requirements
2. The contracting requirements
3. Written specifications for every detail of the building.
4. General conditions
5. Supplementary conditions

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CONSTRUCTION CONTRACTS
THE PROJECT MANUAL
Bidding Documents - The first section of the project manual provides information regarding the
bidding process.
There are four documents included under this heading:
a) Advertisement
b) Invitation for bids
c) Instructions to bidders
d) Bid forms
The Agreement Form -This is the document that will actually be signed by the parties after the
contract is awarded.
General Conditions - it sets the ground rules for playing the game. The responsibilities of each of
the parties are clearly delineated, and the specific terms of the contract are defined in this section
of the manual.

39
CONSTRUCTION CONTRACTS
THE PROJECT MANUAL
Standard clauses that typically are included in
the general conditions:
8) Changes in the Work
1) General Provisions
9) Time and Schedule Requirements
2) Owner Responsibilities
10) Payments and Completion
3) Contractor Responsibilities
11) Protection of Persons and Property
4) Addendum
12) Insurance and Bonds
5) Administration of the Contract
13) Uncovering and Correction of Work
6) Subcontracts and Subcontractor Relations
14) Miscellaneous Provisions
7) Construction by Owner or Others
15) Termination or Suspension of the Contract
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CONSTRUCTION CONTRACTS
THE PROJECT MANUAL
Supplementary Conditions - are considerations beyond the scope of the standard general conditions
and serve as an augmentation to the terms laid out in the general conditions.
Technical Specifications - Technical specifications make up the bulk of the project manual. the
specifications deal more directly with the construction. They are used in conjunction with the plans
and describe the detail that cannot be conveyed by the graphic depictions alone.

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2.30 Specifications and
Building Codes
2.30 Specifications and Building Codes

Building Codes:
• Legal documents that set requirements for structural safety, fire safety,
plumbing, ventilation, and accessibility for the disabled.
• Have the force of law and are enforced by governmental entities
(cities, counties, or metropolitan areas).
• Do not provide specific design procedures but outline design
requirements and constraints.
• Must be followed to ensure the structure can support minimum live
loads, even though engineers are encouraged to determine actual
loading conditions.
• Large cities may write their own codes, but many municipalities adopt
and modify "model" building codes created by nonprofit organizations.
• In the Philippines, the National Building Code of the Philippines is
the primary document used by engineers for building specifications.
2.30 Specifications and Building Codes

Specifications:
• Detailed descriptions outlining the requirements for design,
construction, dimensions, material types, and the overall approach
for a building or structure.
• Complement the workmanship and procedures to be followed in the
design and construction of the project.
2.31 Specifications from the National
Building Code of the Philippines
Building Use Affecting Public Health and Fire-Resistive Requirements
Safety
Designation of Fire Zones Fire-Resistive Standards

Interior Wall and Ceiling Finish

2.31 Specifications from the National Building Code of the Philippines
Building Use Affecting Public Health and Safety
Designation of Fire Zones
Fire-Resistive Requirements
stive Standards
ing Finish a. All buildings and structures, including any changes or additions,
must:
• Be built safely and suit their intended purpose.
• Not negatively affect the community by becoming an eyesore
or contributing to slums or blighted areas.
b. For buildings that manufacture hazardous products (e.g.,
explosives, gas, chemicals):
• Proper environmental safeguards must be in place during
design, construction, and use to protect public health and
safety.
2.31 Specifications from the National Building Code of the Philippines
Designation of Fire Zones Building Use Affecting Pu
Fire-Resistive Requirements
sistive Standards
eiling Finish

a. The Secretary will classify fire zones based on

use, occupancy, construction type, and fire
resistance, following the provisions of the
Code.

b. City or Municipal authorities will divide areas

into fire zones based on this classification, in
line with local plans or recommendations from
local development bodies.
2.31 Specifications from the National Building Code of the Philippines

Fire-Resistive Requirements Designation of Fire

Fire-Resistive Standards Building Use Aff
Wall and Ceiling Finish

Exterior Walls: Structural Frames:

• Types II & III: 1-hour fire-resistive rating. • Types II & III: 1-hour fire-resistive rating.
• Types IV & V: 4-hour fire-resistive rating. • Type IV: 2-hour fire-resistive rating.
• Type V: 3-hour fire-resistive rating.
Interior Elements: Exterior Doors and Windows:
• Types II to IV: 1-hour fire-resistive rating for walls, ¾-hour fire-resistive rating for all types of construction.
floors, and roofs.
• Type V:
▪ 3-hour rating for walls.
▪ 1-hour rating for partitions.
▪ 2-hour rating for vertical openings, floors, and
roofs.
2.31 Specifications from the National Building Code of the Philippines

Interior Wall and Ceiling Finish

Fire-Resistive Standards
Fire-Resistive R
Designation
Buildi

(a) General:
Materials and systems for fire resistance are classified based on their fire-
resistive ratings, determined by internationally accepted testing methods.

(b) One-Hour Fire-Resistive Rating:

1.Walls and Partitions:

Solid masonry (10 cm thick), hollow unit masonry (15 cm thick), solid concrete (10 cm
thick), stud walls with fire-resistant coatings, wood with fire-retardant treatments, and specific
configurations of wood and metal.
2.Floors:
Masonry or concrete (10 cm thick), wood joists with two flooring layers
and a plaster/gypsum ceiling, wood floors (6.3 cm thick) with wood flooring
laid at right angles.
2.31 Specifications from the National Building Code of the Philippines

Interior Wall and Ceiling Finish

Fire-Resistive Standards
Fire-Resistive R
Designation
Buildi

3. Metal Structural Protections:

2.5 cm concrete, 3.8 cm masonry, or metal lath with plaster.
4. Wood Columns and Beams:
Wood columns ≥20 cm, wood beams ≥15 cm.
(c) Two-Hour Fire-Resistive Rating:
1.Partitions, Walls, and Floors:
Solid masonry (15 cm thick), hollow unit masonry (20 cm thick), solid concrete (127 cm thick).
2.Metal Structural Protections:
3.8 cm concrete, 5 cm masonry, or two layers of metal lath with plaster.
(d) Three-Hour Fire-Resistive Rating:
1.Partitions, Walls, and Floors:
Solid masonry (17.8 cm thick), hollow unit masonry (25.4 cm thick), solid concrete (15 cm thick).
2.Protection for Metal Structural Members:
7.6 cm masonry.
2.31 Specifications from the National Building Code of the Philippines

Interior Wall and Ceiling Finish

Fire-Resistive Standards
Fire-Resistive R
Designation
Buildi

(e) Four-Hour Fire-Resistive Rating:

1.Partitions, Walls, and Floors:
Solid masonry (20 cm thick), hollow unit masonry (30 cm thick), solid concrete
(17.8 cm thick).

(f) Steel Joists:

Steel joist floors must meet fire-resistive ratings of 1 to 4 hours based on
internationally accepted standards.

(g) Flame-Proof Materials:

Materials that need to be flame-proofed must be treated with a
flame-retardant coating having a flame-spread rating of 50 or less, as
determined by the "Tunnel Test".
2.31 Specifications from the National Building Code of the Philippines
Interior Wall and Ceiling Finish

(a) General: (b) Interior Finish Materials:

• Interior wall and ceiling finishes • Interior finishes include wainscoting,
must be classified based on their paneling, or other applied finishes for
flame-spread characteristics decoration, acoustics, insulation, etc.
using the "Tunnel Test" or • Requirements do not apply to trim,
equivalent fire protection tests. doors, windows, or materials less than 1
• The flame-spread classification mm thick attached to incombustible
should be determined for each backing.
occupancy group. • Materials for interior walls and ceilings
• The smoke density and toxicity of must be tested and regulated to limit
the materials must not exceed flame-spread.
that of burning untreated wood
under similar conditions.
2.32 Requirements Based on Occupancy
4. Group D - Institutional
Classification of Occupancy Division 1: Mental hospitals, prisons,
reformatories, and similar places
(a) Building Classification by Use or
where personal liberties are
Occupancy
restricted.
Buildings shall be classified based on their use or
Division 2: Nurseries for young children,
occupancy type as follows:
hospitals, nursing homes for non-
ambulatory patients.
1. Group A - Residential: Dwellings
Division 3: Nursing homes for ambulatory
Includes all types of dwellings.
patients, homes for children
2. Group B - Residential: Hotels and (kindergarten and older).
Apartments
Includes boarding or lodging houses, hotels,
apartment houses, convents, monasteries
(accommodating more than 10 people).
3. Group C - Education and Recreation
Includes schools or daycare centers used
more than 8 hours a week for education or
recreation.
2.32 Requirements Based on Occupancy
Classification of Occupancy

(a) Building Classification by Use or Occupancy

Buildings shall be classified based on their use or
occupancy type as follows:

5. Group E - Business and Mercantile

Division 1: Gas stations, storage garages (with no work beyond
maintenance).
Division 2: Wholesale and retail stores, office buildings,
eating/drinking establishments with fewer than 100 occupants,
factories, workshops.
Division 3: Aircraft hangars, open parking garages, heliports.

6. Group F - Industrial
Includes ice plants, power plants, cold storage,
factories using non-explosive materials, and
storage rooms for non-combustible materials.
2.32 Requirements Based on Occupancy
Classification of Occupancy

(a) Building Classification by Use or Occupancy 8. Group H - Assembly Other Than Group I
Buildings shall be classified based on their use or Division 1: Assembly buildings with a
occupancy type as follows: stage and fewer than 100
occupants.
7. Group G - Storage and Hazardous Division 2: Assembly buildings without a
Division 1: Storage of hazardous or stage, with 300+ occupants.
explosive materials (other than Division 3: Assembly buildings without a
flammable liquids). stage, fewer than 300 occupants.
Division 2: Storage of flammable liquids, Division 4: Stadiums, amusement park
dry cleaning with flammable structures, and other similar
liquids, paint shops. buildings.
Division 3: Woodworking shops, factories
producing loose combustible
fibers or dust.
Division 4: Repair garages.
Division 5: Aircraft repair hangars.
2.32 Requirements Based on Occupancy
Classification of Occupancy
(a) Building Classification by Use or Occupancy
Buildings shall be classified based on their use or
occupancy type as follows:

9. Group I - Assembly Occupant Load 1000 or More

Assembly buildings with a stage and 1000 or more occupants.
10. Group J - Accessory
Division 1: Private garages, carports, sheds,
agricultural buildings.
Division 2: Fences over 1.80 meters, tanks, towers.

(b) Other subgroupings or divisions within Groups A to J may be determined by the

Secretary. Any occupancy not listed should be classified based on its use, life, and fire
hazard.

(c) Building Officials will indicate the correct classification on the Certificate of Occupancy
for any building or structure.
2.33 Location of Property

(a) General (c) Buildings on Same Property and

Buildings must be adjacent to or have Buildings Containing Courts
access to a public space, yard, or street on at least When multiple buildings are on the same
one side. Yards must be maintained. The centerline property, they are treated as separate
of an adjoining street or alley is considered the buildings for wall and opening protection.
property line. Eaves must be at least 75 cm from side New buildings on the same property should
and rear property lines. follow the same guidelines for fire protection
as the existing buildings.
(b) Fire Resistance of Walls
Exterior walls must meet fire resistance and
protection standards. Projections beyond the exterior
wall should not extend past one-third of the distance
to the property line. If openings in the wall require
protection, the total area of the openings must not
exceed 50% of the wall area per story.
2.33 Location of Property
Allowable Floor Areas
(a) One-Story and Multi-Story Buildings Allowable Area Increases
The maximum floor area depends on the Floor area can be increased under specific
building's occupancy group and construction conditions, such as having public space,
type. streets, or yards on adjoining sides of the
building.
(b) Area Separation Walls
Each section of a building separated by area
separation walls may be considered a Maximum Height of Buildings and
separate building if the walls meet required Increases
standards. Building height is determined by occupancy,
construction type, population density, street
widths, and parking needs. Height is
measured from the highest adjoining
sidewalk or ground surface. Towers, spires,
and steeples may exceed the height limit by
up to 6 meters if they are made of
combustible materials.
2.33 Location of Property
Maximum Requirements for Group A Dwellings: One
or Two Stories
(a) Dwelling Location and Lot Occupancy (c) Sanitation
A dwelling can occupy up to 90% of a At least one sanitary toilet and proper washing
corner lot and 80% of an inside lot, with at least a 2- and drainage facilities must be provided.
meter distance from the property line. (d) Foundation
Footings must be 30 cm thick and 60 cm below
(b) Light and Ventilation
the ground surface, with posts anchored to
Dwellings must provide adequate light and
footings using straps and bolts.
ventilation:
• Habitable rooms must have a height of at least (e) Floor
2.4 meters. The first floor must support at least 200 kg/m²,
• Room sizes: 6 m² for living rooms, 3 m² for and the second floor at least 150 kg/m².
kitchens, 1.2 m² for bathrooms.
• Windows must be at least 1/10th of the room's (f) Roof
floor area. The roof must withstand a wind load of at
least 150 kg/m².
2.33 Location of Property

Maximum Requirements for Group A Dwellings: One

or Two Stories

(g) Stairs
Stairs must be at least 75 cm wide, with a rise of
20 cm and a run of 23 cm.

(h) Entrance and Exit

At least one entrance and one exit are required.

(i) Electrical Outlets

At least one convenience outlet for every 6
meters of wall, and one light outlet for each room.

(j) Mechanical Requirements

Family dwellings of two stories or fewer are
exempt from mechanical code requirements.
2.34 Classification of all Buildings by Type of
Construction and General Requirements
Types of Construction

(a) Building Classification Based on Construction

Type
Each building must be classified based on its materials
and fire resistance:
Type I: Wood construction with any materials
allowed by the Code for structural elements.
Type IV: Steel, iron, concrete, or masonry construction
Type II: Wood construction with fire-resistant with incombustible, fire-resistive walls and partitions,
materials, one-hour fire resistance throughout, except for nonbearing partitions that can have one-
except for nonbearing partitions which may use hour fire-resistant framing.
fire-retardant wood.
Type V: Fire-resistive building with steel, iron,
Type III: Masonry and wood construction with concrete, or masonry construction. Walls and
one-hour fire resistance throughout. Exterior walls partitions must be incombustible and fire-resistant.
must be fire-resistive and incombustible.
2.34 Classification of all Buildings by Type of Construction and
General Requirements
Types of Construction
(b) Subtypes or Divisions
The Secretary may define additional subtypes within Types I to V.
Buildings that do not fully conform to one of these types will be classified
into a type with equal or lesser fire-resistance.
(c) Certificate of Occupancy
The Building Official will indicate the appropriate construction type
on the Certificate of Occupancy for each building.
2.35 Light, Ventilation, and Sanitation
Light and Ventilation
(a) Every building must provide adequate light and
ventilation. Percentage of Site Occupancy
(b) Buildings must face an approved street, public alley, The maximum site occupancy is based on the
or private street. building's use, construction type, height, and the
(c) Buildings should not be altered in a way that location, in line with local zoning and regulations
reduces room size or window area below Code set by the Secretary.
standards.
Minimum Size of Courts and Their Least
(d) Buildings cannot be enlarged in a way that reduces
Dimensions
the size of required courtyards.
(a) Minimum court size and dimensions depend on
Measurement of Site Occupancy the building’s use, construction type, and height,
(a) Site occupancy is measured at ground level, but courts must have at least a 2-meter (6 feet 7
excluding courts, yards, and light wells. inches) horizontal dimension.
(b) Courts and light wells are measured excluding (b) Inner courts must be connected to a street or
projections, except for small items like roof leaders yard via a passageway or door.
and fire escapes.
2.35 Light, Ventilation, and Sanitation

Ceiling Heights Minimum Air Space Requirements

Rooms such as habitable rooms, bathrooms, and •School rooms: 3 m ceiling height and 1 m² of floor area
utility rooms must have a minimum ceiling height of per person.
2.40 meters. For multi-story buildings, the first •Workshops, factories, and offices: 10 m³ of air space per
story must have a minimum height of 2.70 meters. person during the day, 14 m³ at night.
Garages must have at least 2.10 meters of •Habitable rooms: 14 m³ of air space per adult, 7 m³ per
headroom. child under 10.

Minimum Size of Rooms and Their Least Window Openings

Dimensions Each room must have windows with openings at least
•Living rooms: 6 m² with at least 2.00 meters in the 1/10th of the floor area, and these windows must open to
smallest dimension. a court, yard, public way, alley, or watercourse unless air-
•Kitchens: 3 m² with at least 1.50 meters in the conditioned or mechanically ventilated.
smallest dimension.
•Bathrooms: 1.20 m² with at least 0.90 meters in
the smallest dimension.
2.35 Light, Ventilation, and Sanitation

Mezzanine Floor Vent Shafts

(a) A mezzanine is a partial, intermediate floor not (a) Vent shafts must have a cross-sectional area of at
exceeding half the area of the room it’s in. least 1/10th of a square meter for each meter of height but
(b) It must have a ceiling height of at least 1.90 at least 1 m². No shaft should be less than 60 cm in the
meters. smallest dimension.
(b) Skylights must cover the shaft’s top area.
(c) Air ducts must connect to a street or court with a
minimum cross-sectional area of 0.30 m².

Ventilating Skylights
(a) Skylights must provide the same ventilation as the
window they replace, with movable sashes or louvers.
(b) Rooms with industrial heating equipment must have
adequate ventilation.
2.35 Light, Ventilation, and Sanitation
Artificial Ventilation
(a) General
•Offices, stores, restaurants, factories, etc.: At least 3 air changes
per hour.
•Bakeries, hotel kitchens, laundries, boiler rooms: At least 10 air
changes per hour.
•Auditoriums, assembly rooms: At least 0.85 m³ of air per person.
•Wards, dormitories: At least 0.85 m³ of air per person.

Sanitation
All buildings hereafter erected for human habitation should be
provided with plumbing facilities installed in conformity with the
National Plumbing Code adopted and promulgated by the National
Master Plumbers Association of the Philippines pursuant to Republic
Act 1378, otherwise known as the "Plumbing Law".
2.36 Building Projections Over Public Streets
General
Projection of Balconies and Appendages Over
(a) No part of any building or its appendages can
Streets
extend beyond the property line, unless allowed by this
(a) Projections over streets or alleys must be
Code.
consistent within a block and follow the limits in
(b) The projection of a structure over public property is
Table 6.01-A.
measured horizontally from the property line to the
(b) The clearance between the street or sidewalk
furthest point of the projection.
and the underside of the balcony must be at least
3.00 meters.
Projection into Alleys and Streets
(a) No part of any structure or appendage can project into
alleys or streets.
(b) No projections are allowed on national roads or public
highways.
(c) Footings at least 2.40 meters below grade can project
up to 30 centimeters beyond the property line.
(d) Foundations can encroach into public sidewalks up to
50 centimeters, provided they don't obstruct utilities and
meet other conditions.
2.37 Excavations, Foundations, and Retaining Walls

General Footings, Foundations, and Retaining Walls

The materials and design for excavations and (1) Footings and foundations must be
foundations must follow internationally appropriately designed and sized to safely
accepted engineering standards. support the structure, considering seismic and
other external forces.
(2) If there's an abrupt change in ground levels,
Excavation or Fills
retaining walls must be installed with proper
(1) Excavations and fills must be done safely to avoid
design to prevent soil instability.
endangering life and property.
(2) If excavation affects the support of adjoining properties
or structures, the responsible party must pay for any
necessary underpinning or foundation extensions.
(3) Excavations on public property by utilities must be
repaired and restored to their original condition within 48
hours. Signs and safety measures must be installed to
protect the public.
2.38 Enclosure of Vertical Openings

(a) General (c) Other Vertical Openings

Vertical openings must be enclosed based All shafts, ducts, chutes, and other
on fire-resistive requirements of the vertical openings must be
building type. enclosed according to the
building’s construction type.
(b) Elevator Enclosures Rubbish and linen chutes must
Elevator and escalator terminate in a fire-resistive room,
enclosures must meet fire-resistive and openings should not be in exit
standards based on the building corridors or stairways.
type. Elevator shafts over two stories
must have adequate ventilation (d) Air Ducts
through the roof. In buildings with Air ducts passing through floors
automatic fire-extinguishing systems, must be enclosed in a shaft.
enclosures for escalators are not Dampers should be installed
required, but draft curtains and where ducts pierce the shaft
sprinklers are needed around walls.
openings.
2.38 Enclosure of Vertical Openings

Floor Construction Roof Construction and Covering

(a) Floors must meet fire-resistive standards and
(a) Roof Coverings
be integrated into the building structure.
Roof coverings must be fire-retardant or ordinary,
(b) Floors must be tied to the framework and
depending on the building’s construction type.
supporting walls as part of the whole building.
Combustible insulation is allowed if covered by an
(c) Floor beams and girders must be braced to
approved roof covering.
prevent spreading, with no unsupported joints
exceeding 2.40 meters.
(b) Roof Trusses
Roofs must be framed and tied into the building
structure. Roof trusses must have well-fitted joints,
tightened tension members, and bracing.
2.38 Enclosure of Vertical Openings
Roof Construction and Covering
(d) Roof Drainage
(c) Attics
Roofs must be sloped for drainage unless designed
(1) Attic access must be provided with specific size and
to support water accumulation.
headroom requirements.
(1) Roof drains must be installed at low points to
(2) Enclosed attics in combustible buildings must have
handle water flow.
partitions to divide the space. Fire-extinguishing systems
(2) Overflow drains or scuppers must be installed
can increase the allowable attic area.
above the low point to prevent water buildup.
(3) Draft stops must be installed in trussed roofs for
(3) Concealed piping for overflow drainage must be
buildings over 1900 square meters.
installed.
(4) Attics must have cross ventilation, with a required net
(4) Roof water drainage should not flow over public
ventilating area of 1/150th of the space.
property, except for certain occupancies.

(e) Flashing
Flashing and counterflashing must be provided
where the roof meets vertical surfaces.
2.39 Stairs, Exits and Occupant Loads
(a) General
4. Changes in Elevation:
1. Determination of Occupant Loads: •Except in Group A Occupancies, a ramp must be
The occupant load of a building is determined by used for changes in elevation of 30 cm or more along
dividing the floor area by the square meters or feet per any exit with an occupant load of 10 or more.
occupant.
For mixed occupancies, the total capacity is
calculated by adding the occupant loads for each part of
the building based on occupancy type and construction.

2. Exit Requirements:
•Exit requirements are based on the largest occupant
load.
•No obstructions should block the required width of an
exit, except for certain projections allowed by the code.
3. Posting of Room Capacity:
•Rooms with an occupant load over 50, where no fixed seating
is installed, must post the room’s capacity near the main exit.
The owner is responsible for maintaining legible signage.
2.39 Stairs, Exits and Occupant Loads
(b) Exits Required
1. Number of Exits: 3. Arrangement of Exits:
• Every building or usable part must have at least one exit. • If only two exits are required, they
• Floors above the first story with an occupant load over 10 should be spaced at least one-fifth of the
need at least two exits. perimeter of the area served.
• Mezzanines over 185 square meters or 18 meters in any • With three or more exits, they should be
dimension need at least two stairways to an adjacent arranged to provide alternate paths if
floor. one becomes blocked.
• Stories with 500-999 occupants need at least three exits;
stories with 1000 or more require four exits.
• Exits for basements and cellars are required as for
stories.
• Floors above the second story, basements, and cellars
need at least two exits.
2. Width:
• Exit width in meters should be the occupant load divided by 165.
• The required exit width for any story includes occupant load plus
percentages from adjacent stories above and below.
2.39 Stairs, Exits and Occupant Loads
(b) Exits Required (c) Doors

4. Distance to Exits: 1. Swing:

In unsprinkled buildings, no point should • Exit doors must swing in the direction of travel when
be more than 45 meters from an exit, except in serving hazardous areas or occupant loads of 50 or
buildings with automatic fire-extinguishing more.
systems, where the distance may be increased • Double-acting doors cannot be used as fire exits and
to 60 meters. should have a view panel of at least 1300 cm².
2. Type of Lock or Latch:
• Exit doors must be openable without a key or special
effort.
• In some cases, exterior exit doors may have a sign stating
the door will remain unlocked during business hours.
3. Width and Height:
• Exit doors should be at least 90 cm wide and 2 meters
tall.
• Doors must open 90 degrees and allow a minimum of 70
cm clear width.
2.39 Stairs, Exits and Occupant Loads
(c) Doors

4. Door Leaf Width: 8. Door Identification:

•No exit door leaf should exceed 1.20 meters in •Exit doors must be clearly marked to distinguish
width. them from adjacent construction.
5. Special Doors: 9. Additional Doors:
•Revolving, sliding, and overhead doors cannot be used •Additional doors must meet all egress
as required exits. requirements. Revolving doors may be used in
6. Egress from Door: certain conditions, but not in places requiring panic
•Every exit door must lead directly to an approved egress hardware or as the only exit.
route.
7. Change in Floor Level at Doors:
•There must be a floor or landing on each side of an exit
door, level with or no more than 5 cm lower than the
threshold.
•In Groups A and B, a door may open onto the top step of
a flight of stairs if it does not swing over it and the landing
is no more than 19 cm lower.
2.39 Stairs, Exits and Occupant Loads
(d) Corridors and Exterior Exit Balconies

1. Width: 5. Construction:
•Corridors and exterior exit balconies must be at •Corridor walls and ceilings must be at least one-
least 1.12 meters wide. hour fire-resistant unless specified exceptions
apply.
2. Projections:
•The width must remain unobstructed except for 6. Openings:
trim, handrails, and doors that don’t reduce the •Walls of fire-resistant corridors must have door
width by more than 18 cm. openings protected as per fire exit door requirements.
•Other openings must be covered with fixed wire glass,
3. Access to Exits:
with openings not exceeding 25% of the wall area.
•Multiple exits must be arranged so that you
can reach either exit from any point in the
corridor or exterior balcony.
4. Dead Ends:
•Dead ends in corridors or exterior exit
balconies are allowed if they are no more than
6 meters long.
2.39 Stairs, Exits and Occupant Loads

(e) Stairways
Every stairway in a building must meet the requirements
of this code, except for stairs or ladders used only to
access equipment.

1. Width: 2. Rise and Run:

o Stairways serving an occupant load of more than o Step rise must not exceed 19 cm, and the
50 must be at least 1.12 meters wide. run must be at least 25 cm.
o For loads of 50 or fewer, stairways may be 90 cm o The height of risers and width of treads
wide. must not vary by more than 5 mm in any
o Private stairways with fewer than 10 occupants flight.
can be 75 cm wide. o Private stairways for fewer than 10
o Trim and handrails must not reduce the width by occupants can have a 20 cm rise and a 23
more than 9 cm. cm run.
2.39 Stairs, Exits and Occupant Loads

(e) Stairways

3. Winding Stairways:
o In Group A Occupancies and private Group B
stairways, winding stairs may be used, but the
run at any point must be at least 15 cm wide,
and not less than 30 cm from the narrower side
of the stairway. 5. Landings:
o Every landing must have a dimension equal
4. Circular Stairways: to the width of the stairway in the direction of
o Circular stairways are allowed as exits if the travel.
minimum width of the run is 25 cm, and all o For straight-run stairs, landings need not
treads in one flight must have identical exceed 1.20 meters in width.
dimensions, within a 5 mm tolerance. o Doors should not reduce landing width by
more than 9.3 cm when fully opened.
2.39 Stairs, Exits and Occupant Loads
(e) Stairways
6. Basement Stairways: 9. Exterior Stairway Protection:
o If a basement stairway and a stairway to an upper o Any openings in the exterior wall below or
story share the same exit enclosure, a barrier must within 3 meters horizontally of an exterior exit
prevent access to the basement. stairway serving a building over two stories
o Directional exit signs must be provided. high must be protected by a self-closing fire
7. Distance Between Landings: assembly with at least a 3/4-hour fire-resistive
o The vertical distance between landings must not rating.
exceed 3.65 meters. o Openings may be unprotected if two
8. Handrails: separated exterior stairways serve an exterior
o Stairways must have handrails on each side. exit balcony.
o Stairways over 3 meters wide require at least one 10. Stairway Construction (Interior):
intermediate handrail for every 3 meters of width. • Interior stairways must be constructed according
o Handrails should be between 75 cm and 85 cm to fire-resistive standards.
above the nosing of treads. • If the stairway encloses usable space, it must be
o Ends of handrails must be returned or terminate at protected on the enclosed side as required for
newel posts or safety terminals. one-hour fire-resistive construction.
2.39 Stairs, Exits and Occupant Loads
(e) Stairways
13. Headroom:
11. Stairway Construction (Exterior): • Every required stairway must have a minimum
• Exterior stairways must be made from headroom clearance of 2.00 meters.
incombustible materials, except for Type III • This clearance is measured vertically from a plane
buildings with two or fewer stories in low fire- parallel and tangent to the stairway tread nosing to the
resistive zones, or Type I buildings, which can use soffit above at all points.
wood at least 5 cm thick.
• Exterior stairways cannot project into areas
requiring protected openings.
• Enclosed spaces under exterior stairs must be
protected with one-hour fire-resistive construction.

12. Stairway to Roof:

• Buildings more than two stories high must have one
stairway extending to the roof, unless the roof has a
slope greater than 1 in 3.
LESSON 2:

CONSTRUCTION
ESTIMATES
CONTENTS
1. Introduction
2. Network Diagram Representation and
Network Construction
3. Determination of the Critical Path
4. Consideration of Time-cost Trade-offs
5. Completion of projects in minimum time
6. The Bar Chart or Grant Chart

82
INTRODUCTION
WHAT IS A PROJECT?
• Combination of interrelated
activities executed in a certain
order before a task can be
completed.

ACTIVITY IN A PROJECT?
• Viewed as a job requiring time and
resources for its completion

84
PROJECT SCHEDULING TECHNIQUES:
1. P.E.R.T. 2. C.P.M.

✓ SCHEDULING & ✓ CONTROLLING OF

PLANNING OF ACTIVITY PROJECTS
✓ Developed by E.I. Du ✓ Developed by U.S. Navy
Pont de Nemours & (for Polaris Missile
Company Program)
✓ Extended to Mauchly
Associates

CONCLUSION: MADE INDEPENDENTLY BUT HAVE SIMILAR PRINCIPLES

: DIFFERS HISTORICALLY.
85
PROJECT SCHEDULING
PHASES:

1. PLANNING

2. SCHEDULING
3. CONTROLLING

USING (P.E.R.T. – C.P.M.)

86
1. PLANNING:

• Breaking down the project,

• Determining time estimates,

• Constructing network diagram.

87
2. SCHEDULING

• Constructing time chart (start – finish),

• Pinpointing critical activities,

• Showing amount of slack times.

88
3. CONTROLLING

• Using the network diagram

(for periodic progress),

• Updating the network.

89
NETWORK DIAGRAM
REPRESENTATION
AND NETWORK
CONSTRUCTION
NETWORK DIAGRAM

91
RULES FOR CONSTRUCTING A
NETWORK DIAGRAM:
1. Each activity is represented by one and only one arrow in the
network
2. NO two activities can be identified by the same head and
tails event (A dummy activity is introduced in such situations)

92
2. NO two activities can be identified by the same head and
tails event (A dummy activity is introduced in such situations)

93
RULES FOR CONSTRUCTING A
NETWORK DIAGRAM:
1. Each activity is represented by one and only one arrow in the
network
2. NO two activities can be identified by the same head and
tails event (A dummy activity is introduced in such situations)
3. To ensure correct relationship, the following questions are
needed.

94
3. To ensure correct relationship, the following questions are
needed.

a. What activities must be completed immediately before

this activity can start?

b. What activities must follow this activity?

c. What activities must occur concurrently with this

activity?

95
EXAMPLE 1:
• The Galaxy company is to buy a small business, Tiny Ltd. The whole
procedure involves four activities:
A. Develop a list of sources for financing;
B. Analyze the financial records of Tiny Ltd;
C. Develop a business plan (sales projections, cash flow
projections, etc.);
D. Submit a proposal to a lending institution.

96
EXAMPLE 1:

97
EXAMPLE 2:

98
EXAMPLE 2:

99
EXAMPLE 2:
• The first completed 7-activity network is shown below:

100
DETERMINATION OF
THE CRITICAL PATH
AN ACTIVITY IS
CRITICAL IF…

- A delay in the beginning will

cause delay in the completion
date of the project.

102
WHAT IS A NON-
CRITICAL ACTIVITY?

• An activity that has time-to-spare.

• Time to spare = slack / float time

103
WHAT IS A CRITICAL
PATH?

• A sequence of connected critical

activities that LEADS from the
source node to sink node.

104
EXAMPLE 3:
• The owner of a shopping center is considering modernizing
and expanding the current 32-business shopping complex.
He hopes to add 8 to 10 new business or tenants to the
shopping complex. The specific activities that make up the
WPU-QSF-ACAD-82A Rev. 00 (09.15.20) 9 expansion project,
together with information on immediate predecessor and
completion time, are listed in the following table.

105
EXAMPLE 3:

106
EXAMPLE 3:
• We are now asked to answer the following questions:
1) What is the total completion time of the project?
2) What is the scheduled start and completion time for each
activity?
3) Which activities are critical and must be completed exactly
as scheduled in order to keep the project on schedule?
4) How long can the non-critical activities to be delayed
before they cause a delay in the completion time for the project?

107
EXAMPLE 3:
• To solve the problem, we need first to construct the network
according to the problem specification.

108
EXAMPLE 4:
• For activity A: ES = 0 and t = 5; Thus, the earliest finish time
for activity A is: EF = 0+5 = 5. We will write ES and EF directly
on the network in brackets. Using activity, A as an example,
we have;

109
EARLIEST START TIME
RULE
• is equal to the LARGEST of the earliest finish
time for all activities entering the node.

110
LATEST FINISH TIME
RULE
• is equal to the SMALLEST of the latest start
times for all activities leaving the node.

111
SLACK
✓the length of time an activity that can be delayed without
affecting the total time required to complete the project

✓ZERO (0) slack = Critical Path Activities

112
SLACK
✓From Example 3:

113
EXAMPLE 3 (SLACK):
• We are now asked to answer the following questions:
1) What is the total completion time of the project?
2) What is the scheduled start and completion time for each
activity?
3) Which activities are critical and must be completed exactly
as scheduled in order to keep the project on schedule?
4) How long can the non-critical activities to be delayed
before they cause a delay in the completion time for the project?

114
THE PERT/CPM CRITICAL
PATH PROCEDURE
1. Develop a list of activities,
2. Determine the immediate predecessor,
3. Estimate the completion time,
4. Draw a network of activities and
predecessors
5. Make a forward pass to determine the
earliest start and finish times using
network,
6. Make a backward pass through the
network to determine the latest start and
finish times using step 5, 115
THE PERT/CPM CRITICAL
PATH PROCEDURE
7. Use the difference between latest and
earliest start time (each activities) to
determine slack time,
8. Find activities with zero slack to
determine critical path activities,
9. Use the information from step 5 & 6 to
develop activity schedule of the project.

116
CONSIDERATION OF
TIME-COST TRADE
OFFS
COMPLETION OF PROJECTS AT
MINIMUM COST
✓ Add resources = Project may sped up.
✓ Speeding up = Save money on project overhead
= Avoid penalties
= Earn bonus (early completion)
✓ However, Critical Activities increases.

118
EXAMPLE 5:
• A project consisting of 8 activities are described in the following
table. The cost for completion of these 8 activities is Php 5800
excluding the site overhead. The overhead cost of general site
activities is Php 160/day, (take £ in table below as Php). You are
asked to:
1) Calculate the normal completion of the project, its cost, and the
critical path;
2) Calculate and plot on a graph paper the cost/time function for
the project and state:
• the minimum cost and the associated time;
• the shortest time and the associated cost.
119
EXAMPLE 5:

120
EXAMPLE 5: If project will speed up,

121
EXAMPLE 5: For further savings with reduced time,

122
EXAMPLE 5: To further reduce Time,

123
EXAMPLE 5: Conclusion:
• 13 days is the minimum completion time.
• No further reduction time is available on critical path
1-2-5-6.

124
COMPLETION OF
PROJECTS IN
MINIMUM TIME
✓ Primary interest of completion time = least time
✓ Least time with least possible cost.

✓ Efficient ways of proceeding interest:

1. Crash every activity and look at resulting
network.
2.Consider activities that are Not critical and
allow the most expensive among these to
slow down (w/o increasing project duration).

126
EXAMPLE 6:
• The data shown in the following table relates to a contract
being undertaken. There are also site costs of Php 500 per
day. You are required to:
(1)calculate and state the time for completion on a normal
basis;
(2) calculate and state the critical path on this basis, and the
cost;
(3) calculate and state the cost of completion in the shortest
possible time.
127
EXAMPLE 6:

128
EXAMPLE 6: Under normal basis,

- The
project
require 39
days to
complete
(normal)

129
EXAMPLE 6: For minimum completion time,

130
EXAMPLE 6: For minimum completion time,

131
EXAMPLE 6: For minimum completion time,

132
EXAMPLE 6: For minimum completion time,

133
EXAMPLE 6: For minimum completion time,

• After the fourth reconstruction, NO further savings were

possible.

134
EXAMPLE 6: For minimum completion time,

135
THE BAR CHART OR
GANTT CHART
BAR CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ A simple visual scheduling tool,

✓ Display information graphically.

137
BAR CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ Column = represents given time scale.

✓ Rows = represents scheduled activities.

138
BAR CHART
✓ It is one of the planning functions.
✓ Carried out before a job initializes.
✓ Helps to organize schedule workforce
and material deliveries.

139
BAR CHART

140
BAR CHART C.P.M.
• Does not show • Activities cannot
dependencies happen until all
• Inability to show float previous activities have
times. been completed

• Does not indicate • Float times can be seen

critical activities. and adjusted.
• Show critical activities

141
BAR CHART C.P.M.

142
GANTT CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ Can be made in simple graphical

versions.
✓ Can be made in complex automated
versions using Microsoft Project / Excel. 143
GANTT CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ Gives clear illustration of project status,

✓ However, it does not indicate
dependencies.
144
PERT CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ A popular project management

charting method that creates Gantt
Charts.
145
AUTOMATED GANTT CHART
6

0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3

✓ stores more task information and

procedure notes.
✓ Easy to change.
146
Lesson 3:
Construction Project
Organization &
Requirements
Learning outcomes
At the end of this Module, you can:
1. Understand the importance of project organization in construction
projects
2. Identify the key stakeholders involved in a construction project and
their roles
3. Describe the different types of construction contracts and their
implications
4. Explain the concept of scope of work and its significance in project
planning
5. Identify and describe the key elements of a construction project
plan
6. Analyze the importance of communication and collaboration in
construction projects
7. Explain the role of contract administration in ensuring successful
project delivery
Contents

1. Construction Project
Organization
2. The Contractor’s Site
Organization
3. Organization Structure
4. Project Requirements
3.10. Construction project
organization
A project organization should be flexible. It should
respond to the type and complexity of the job. It will
vary, for instance, with the ratio of specialist
engineering and services work to main contractor's
work. The traditional line and staff organization may
not encourage the close cooperation and good
communication that are essential to the success of
projects. Rigid roles, captured in job descriptions, can
create problems. Loosely defined, overlapping roles can
encourage the kind of teamwork needed in
construction.
Characteristics of a Project Organization
1. Goals; Clearly defined as short-term, in comparison with
those of the parent firm. Stated as cost targets, time
deadlines, quantities and standards of performance,
quality and materials. Most project goals are
quantifiable and progress towards them can be
measured.
2. Timescale; Relatively short-term. The project lifespan is
finite, with specific dates for commencement, completion
and key stages of the project.
Characteristics of a Project Organization
3. Tasks; Variable in scope and technical complexity. Less
repetitive than most manufacturing tasks. Assembly of a
wide range of raw and partly processed materials and
components. High level of task specialization, reinforced
by trade practice and custom.
4. People; Wide range of background, knowledge and
technical skills. Mixture of specialists, craft workers,
semi-skilled and unskilled. Many involved for only part
of the project duration. Willing to tolerate job mobility,
job security and poor working conditions.
Characteristics of a Project Organization
5. Environment; Comparative characteristics for the
stable duration of the project, except for the weather
which is highly variable, and the labor market which
fluctuates in response to local competition and changes
in workload.
ORGANIZATIONAL ACTIVITIES
• One way of analyzing an organization is to
consider it as a system and identify its sub-
systems.
• CAN BE SPLIT INTO TWO:

1. DECISION SUB-SYSTEM
2. ACTION SUB-SYSTEM
Four Major Activities of an Organization

1. Deciding on objectives and policies. Keeping operations going. An

organization must have a sense of direction and purpose. A high-level
sub-system works out priorities, sets standards, lays down codes of
ethics and gives overall guidance.
2. Keeping operation going. There is a sub-system for the routine
productive tasks of the business necessary to achieve its purpose. This
includes most of the production function, office administration and
accounting system. Selling comes under this heading, but not the whole
of marketing. Coping with crises and breakdowns.
Four Major Activities of an Organization

3. Things will go wrong. A 'trouble-shooting' sub-system

deals with problems. Failures can occur anywhere in the
organization. A routine production task may break down
because materials are delivered late. A marketing decision
may fail because trading conditions change unexpectedly.
Four Major Activities of an Organization

4. Developing the organization. Some activities are aimed at

changing the organization or its methods. Research and development
and parts of production, personnel and marketing contribute to the
organizations. For instance, the personnel function of staff
development is a key aspect of organizational change. In construction,
deciding policy and developing the organization are mainly the
province of the parent companies. The project task-force will be largely
concerned with keeping things going - getting the job built on time and
within budget - and coping with operational problems.
3.11. Objectives of Organization

• Typical economic objectives are:

• To provide a fair return to shareholders.
• To satisfy clients' requirements.
• To utilize resources efficiently.
• To improve the company's position in its
markets.
• To develop products which can be sold
profitably.
3.11. Objectives of Organization

• To provide employees with fair compensation

for their efforts.
• To encourage and support individual growth
and development.
• To provide secure employment and a
friendly, co-operative atmosphere.
• To benefit rather than harm the community,
avoiding activities which endanger public
health.
ENVIRONMENTAL OBJECTIVES
• During the late 1980s and early 1990s, environmental
objectives were increasingly advocated by management
commentators and adopted by organizations. Evidence started
to accumulate of extensive ecological damage caused by
industrial activity and the full environmental impact of
businesses was recognized.

160
UNDERLYING OBJECTIVES
• However, many so-called objectives are not objectives at all.
They are the means by which underlying goals are achieved.
For example, profitability can be viewed not as a goal, but as a
way of ensuring that organizations survive, wages are paid,
shareholders are rewarded and, perhaps, managers' self-
images are satisfied.

161
UNDERLYING OBJECTIVES
• However, many so-called objectives are not objectives at all.
They are the means by which underlying goals are achieved.
For example, profitability can be viewed not as a goal, but as a
way of ensuring that organizations survive, wages are paid,
shareholders are rewarded and, perhaps, managers' self-
images are satisfied.

162
In many organizations,
profit is a prerequisite for survival
and, for this reason, is important.
The purpose of setting up project
organizations is to build
buildings and structures.
Construction can be thought of as
a strategy for achieving a variety
of goals for the people involved.
Ideally, these goals will be
achieved by completing projects
on time, at the right cost and
quality, but in practice some of
the objective’s conflict. Managers
use time, quality and cost to
measure project performance.
THE QUANTIFIABLE CRITERIA OF SOCIAL OBJECTIVES, INCLUDES:
COST TARGETS

DATES FOR STARTING &

FINISHING EACH OPERATION

SPECIFICATIONS OF
MATERIALS AND WORK
164
3.20. THE CONTRACTOR’S SITE ORGANIZATION
The key personnel employed on a construction site for a large
complex job are usually:

1. The Project Manager, who is in over-all in-charge of the project (most

likely civil engineer, who has a full knowledge of the work).
2. Section Engineers, each responsible to the project manager for some part
of the construction.
3. The Plant Manager or ‘site coordinator’ organizes all plant required on the
job, including its maintenance and any repair that can be done on the job.
4. The General Foreman, is usually a widely experienced ‘outside man’
whose main job is to organize and direct the work of the tradesmen and the
skilled workers on site. He will work closely with the section engineers and
usually have section foremen working under him.
165
3.20. THE CONTRACTOR’S SITE ORGANIZATION
The key personnel employed on a construction site for a large
complex job are usually:

5. Quantity Surveyor or Measurement Engineer, prepares the

contractor’s accounts, using the subagents or section engineers to
supply him with the measurements of work done.
6. Office Manager, should have under him/her:
➢Ordering Clerk, who issues orders for materials and gets
invoices checked.
➢Pay Clerk, who checks the time sheets, makes up the pay sheet,
and pays the workers.
166
3.21. THE PROJECT MANAGER
• He (or She) is responsible for directing the construction work
on site. He (or she) will have wide powers to employ men, hire
machinery and equipment, purchase materials, and employ
sub-contractors. His powers to do this without reference to his
head office, will depend on the size of the job, its nature and
distance from head office, and his standing within his firm. He
(or She) must be knowledgeable in the arts of construction,
able to command men and be a good organizer.

167
3.22. THE SITE FIELD PERSONNEL

1. Section Engineers, carry out or organize the surveying and setting

out work, and conduct any necessary technical tests. Initially there will
be considerable work to do in site levelling, and setting out the main
grid lines for the project
2. The Plant Manager, holds a key position on site. His job can be
onerous since construction work is held up if plant is not available due
to breakdowns or failure to order in time.

168
3.22. THE SITE FIELD PERSONNEL

3. A General Foreman, is widely employed on the many construction projects

which are not too large for one person to control. He then acts as the project
manager’s right-hand man for the execution of the work in the field, his duty
being to keep the work moving ahead daily as planned. He often has much
authority on site, and any junior engineer who gets at cross purposes with
him may find his days numbered.
4. The Skilled Men, include reinforcement fixers, steel erectors, concreters,
formwork carpenters, bricklayers, pipe jointers, crane and machine
operators, miners and other trade specialists.

169
3.22. THE SITE FIELD PERSONNEL

5. Specialist Sub-contractors or Labor-only Gangs, are now widely used

to carry out specific trade work. Labor-only gangs are self-organizing groups
of workers under their own foreman or gang leader.

170
3.23. THE SITE OFFICE PERSONNEL
1. Office Manager, is needed on all but the smallest sites. He deals
with getting all the miscellaneous requirements for the job, that is,
the ‘consumables’ such as picks and shovels, protective clothing,
small tools, minor repairs, fuel deliveries, electricity supplies and
telephone, etc. He will be in control of storekeepers, messengers,
teaboys, staff car drivers and night watchmen.
2. Site Accountant, often assisted by a pay clerk, handles all
cash transactions on site and the local bank account. It is essential
to employ experienced persons on this type of work.
171
3.23. THE SITE OFFICE PERSONNEL
1. Materials Clerk on site then checks the deliveries against the
supplier’s invoices and against the original order, certifies the
invoice and sends it to head office for payment. This system can
only work, of course, if both head office and the site are in the
same city or province.
2. Quantity Surveyor (QS) (or surveyors) may be employed on
site to draw up monthly applications for payments due to the
contractor, according to the measurement of work done as
required under an Philippines Institute of Civil Engineers (PICE)
bill-of-quantities contract.
172
3.24. THE CONTRACTOR’S USE OF SUB-CONTRACTORS
Many contractors now use sub-contractors to do much of their work. Most
conditions of contract permit a contractor to sub-let work of a specialist
nature; but for Government of the Philippines projects sub-letting is not
allowed under the conditions of Philippines Contractor Accreditation
Board (PCAB). But silently, sub-letting is done in private construction
projects at any part of the work, but not the whole of the work. The
contractor does not have to notify any labor-only sub-contracts he uses.
173
3.30. ORGANIZATION STRUCTURE
Most organizations are not designed, they grow. They eventually
reach a size where it becomes necessary to write down who does
what, otherwise the managers lose sight of the whole picture and jobs
are forgotten, or done twice.

174
3.30. ORGANIZATION STRUCTURE
When designing or improving an organization, senior managers must
ensure that:
1. tasks and responsibilities are allocated to groups and individuals,
including discretion over work methods and resources;
2. individuals are grouped into sections or larger units and the units
integrated into the total organization;
3. formal relationships are set up, spans of control considered and
the number of managerial levels decided;

175
3.30. ORGANIZATION STRUCTURE

4. jobs are clearly defined, but are not too rigid or specialized;
5. authority is delegated and procedures are set up for monitoring its
use;
6. communication systems are created, improving information flow
and coordination;
7. procedures are developed for performance appraisal and reward.

176
3.30. ORGANIZATION STRUCTURE
• SPECIALIZATION

Most organizations have introduced specialization in the belief

that it leads to better use of people and resources, but it has
drawbacks too. It leads to fragmentation and the need to control and
integrate tasks more tightly. In construction, the fragmentation is
very marked.

177
3.31. PROJECT ORGANIZATION STRUCTURE
1. Organization charts - Many firms draw up some form of
organization chart, a kind of map of the firm. The chart gives an overall
picture of how roles are allocated and helps senior managers to identify
organizational problems and develop procedures and succession plans.
It gives new employees a better idea of the 'shape' of the organization.
2. Job descriptions and organization manuals - These documents
set out the functions or duties of individuals and departments and the
relationships between them. They can be quite detailed. The job
descriptions are details of specified duties and responsibilities of an
individual holding the given position. These is intended to make the
organization more efficient and reliable.
178
3.31. PROJECT ORGANIZATION STRUCTURE
• 3. Organizational Structure of a Construction Project

There is no single organizational chart that will remotely

approximate the organizational structure of the field forces of the
owner, the design organization, or the contractor on all projects.
Before the internal structure of any of the principals to a construction
contract can be examined, some understanding of the several basic
types of contractual relationships must be gained. Of the several
types of contractual relationships frequently encountered in
construction;

179
3.31. PROJECT ORGANIZATION STRUCTURE
• 3. Organizational Structure of a Construction Project

The four of the principal types are:

1. Traditional architect/engineer (A/E) contract
2. Design/construction manager (D/CM) contract
3. Professional construction manager (PCM) contract
4. Design–build contract (similar to turnkey construction)

180
3.31. PROJECT ORGANIZATION STRUCTURE
3. ORGANIZATIONAL STRUCTURE OF A CONSTRUCTION PROJECT
• 1. Traditional architect/engineer (A/E) contract

Figure 3.1:
Traditional
Construction
Contract
Relationship

181
3.31. PROJECT ORGANIZATION STRUCTURE
3. ORGANIZATIONAL STRUCTURE OF A CONSTRUCTION PROJECT
• 2. Design/construction manager (D/CM) contract

Figure 3.2: The

Design/Constructi
on Manager Type
of Contract

182
3.31. PROJECT ORGANIZATION STRUCTURE
3. ORGANIZATIONAL STRUCTURE OF A CONSTRUCTION PROJECT
• 3. Professional construction manager (PCM) contract

Figure 3.3:
Professional
Construction
Manager Agency
Contract.

183
3.31. PROJECT ORGANIZATION STRUCTURE
3. ORGANIZATIONAL STRUCTURE OF A CONSTRUCTION PROJECT
• 4. Design–build contract (similar to turnkey construction)

FIGURE 3.4:
Design-Build
Contract
Relationships

184
• By now, it should be very clear to you
that the construction project is a complex
undertaking and numerous people,
activities, and requirements are involved
to accomplish the goals set forth by the
owner. Obviously, anyone involved in
construction management must be
3.40. Project familiar with the requirements in the
overall process in order to move the
Requirements project from concept to occupancy and
utilization by the end user. The overall
design and construction process are very
linear in nature and requires a systematic,
comprehensive approach. Each of the
steps is unique, and specific management
techniques and skills are needed to keep
everything on track.
185
The Design and Bidding Process

1. The Design process 2. Bidding process 3. Contracts

- Drawing plans - Invitation to bid - Notice of award
- Project estimates - Pre-qualifications - Bond posting
- Project specifications - Submission of bid - Contract signing
- Project schedule and - Opening of bids
management 4. Notice to Proceed
- Evaluation of bids

186
A. Pre-Construction
1. Assign project team
2. Value engineering
3. Securing required permits
The Project
B. Procurement Implementation
1. Project buy-out Process
2. Purchase orders
3. Procure laborers and equipment’s

187
C. Actual Construction
1. Mobilizations
2. Staging
3. Lay-out
4. Operation Navigating
D. Post-Construction Q&A sessions
1. Project Close-out
2. Owner move in
3. Warranty
4. Project evaluation
188
3.41. Pre-Construction Stage

The only member of the construction team who have been

involved with the project are the estimators. Now with contract in hand
and a notice to proceed from the owner, it is time to bring on the rest of
the team. This is when the estimators pass the job over to the project
manager. The project manager is the captain of the construction
management team. This is most likely the first time that the project
manager has seen the job, so the quality of the information passed from
estimator to project manager is very important. Keep in mind that cost
control is one of the most crucial components of the construction
management task, and poor transfer of information here will result in
significant headaches for the construction management team down the
road.
189
Assigning the
Project Team

Figure 3.5: Project Organizational Chart for key

190
Personnel for the Project
1. Project Manager (PM)
is the captain of the team. Project managers
usually have extensive experience in construction and a
broad background in all aspects of the management
process. The PM guides and directs the project team and
monitors the schedule, cost, and quality, making
adjustments as needed to bring about a successful
Assigning the outcome.

Project Team • PM’s Accountability:

✓they must see to it that the obligations spelled out
in the contract documents are met to the owner’s
satisfaction.
✓they must also make sure that the project runs as
efficiently as possible, taking advantage of every
opportunity to save time and money to ensure a fair
and reasonable profit to the construction firm.
191
2. Contract Administrator:
This person assists both the project
manager and the superintendent with many of
the details of the contract—especially the general
and supplemental conditions of the contract.
Assigning the The contract administrator may process progress
Project Team payment applications, change orders, or
submittals on behalf of the project manager.
The contract administrator must be completely
familiar with the contract stipulations and
provisions and accustomed to working with all of
the common forms, policies, and procedures.

192
3. Superintendent:
If the project manager is the captain of the
Assigning the team, then the superintendent is the first
lieutenant. The superintendent is responsible for
Project Team coordinating all of the construction activities on-
site and keeping the project on schedule.

193
4. Field Engineer:
This entry-level position is usually the first
step to becoming a project manager. Field
Assigning the engineers are responsible for handling much of
the paperwork that passes through the field
Project Team office. They are usually assigned the tasks of
processing and tracking requests for information
(RFIs), submittals, and shop drawings.

194
4. Value Engineer:
It is a process that may or may not be
conducted during the preconstruction stage,
depending primarily upon which project delivery
method is being used. In the low-bid, design-bid-
build scenario, the owner is not really asking you
for this evaluation. However, in the more
Assigning the integrated collaborative approaches, it is often a
matter of course to conduct value engineering
analysis as the design is being developed. Value
Project Team engineering is actually one of the most valuable
services that a construction management team
can deliver. In this process, a thorough analysis is
conducted of the design, products, and materials
and their application, installation, and execution
to determine whether the proposed design
solutions are really the best solutions relative to
their cost.
195
Securing Required Permit

Before construction can begin, building permits must be secured to the

local building authority. This is probably the single most crucial aspect of the
pre-construction process. Although the owner may secure building permits
before the project is let out for bids, in most instances this task is typically
handled by the construction management team of the winning contractor. If
this task is mismanaged, the entire project is at risk for failure. Time is of the
essence on virtually every construction project. A delayed permit may cause
also a delay in the construction of the project. Unfortunately, even when the
contractor is on top of the permitting process, circumstances beyond their
control may throw a monkey wrench into the works.
196
3.42. Procurement of Materials
& Light Equipment Facilities
To procure means to buy or obtain. The
procurement stage of construction management
is often referred to as “buying out” the job or
purchasing the labor, materials, and equipment
needed to complete the project. A great deal of
the construction management function has to do
with managing contracts—contracts to secure the
labor and trades needed to perform the work and
contracts to secure the materials and equipment
that will be placed on the project. The two
primary instruments associated with this effort
are subcontracts and purchase orders.
197
3.43. The Construction Stage
Once the work is ready to start, the
superintendent will call for a pre-construction
meeting with all the subcontractors and major
Assigning the material vendors. This meeting essentially
Project Team establishes the ground rules for working
together. The superintendent, also uses this
opportunity to go over issues such as work
sequencing, work hours, material storage,
quality control, site access, and many other
pertinent topics.

198
3.43. The Construction Stage
The following are some of the activities that
should be done during the mobilization process:
1. Set up field office
2. Set up temporary storage facilities
3. Secure the site
1. Mobilization 4. Organize adequate parking and site access
5. Develop a materials and handling plan
6. Secure temporary electric, water, and
telephone service
7. Arrange for trash and debris removal

199
3.43. The Construction Stage

The following are some of the activities that

should be done during the mobilization process:
8. Provide and place portable toilets
9. Install job signage and barricades
10. Assemble survey and layout personnel
1. Mobilization
11. Confirm testing agencies and personnel
12. Establish job site management systems
13. Establish safety programs and protocol
14. Obtain and pay for all required permits.

200
3.43. The Construction Stage

Mobilization addresses all of the activities

that you must accomplish in order to start the
construction. But where are you going to put all
of these materials, equipment, mobile office
facilities, trash dumpsters, portable toilets,
2. Staging & storage trailers, and the like? The
superintendent must formulate and diagram a
Layout Plans site layout plan and staging strategy that will
provide the highest productivity and efficiency of
movement. You will get a much closer look at
this requirement, including some of the factors
considered when making site layout decisions.

201
3.43. The Construction Stage

The heavy equipment operators are

moving dirt, the concrete finishers are pumping
3. Construction concrete, and the steel erectors are setting beams
and girders. There are cranes hoisting
Operations equipment and trucks delivering materials and
workers making noise and stirring up dust
everywhere

202
3.44. Post – Construction Stage
You might think that once the construction is
complete, the job is over. Not quite. Just as when
you cook and ser ve a magnif icent dinner for a
roomful of people, you still have to clean up
af ter ward . The post-construction stage is the
cleanup stage. It is very impor tant that this stage
be handled with as much energy and enthusiasm
as the project startup and operations, because a
slipup here can have costly consequences down
the road. And you always need to remember that
no matter how well the f irst 90 percent went, if
you make mistakes and drop the ball during the
last 10 percent of the job, that’s all the owner will
remember. The team still has a number of tasks to
manage before they can call it a wrap.
20XX 203
The Project Closeout
The final step in the construction
process is the project closeout. As
previously stated, along with project
startup, this step often becomes the
most difficult to manage.

204
The Project Closeout
The construction management team must complete the following list
of final standard procedures before they can celebrate the completion
of a job well done:

◆ Project punchout

◆ Substantial completion

◆ Final inspection

◆ Cer tificate of occupancy

◆ Commissioning

◆ Final documentation

◆ Final completion

205
The Project Closeout

1.0 Project Punchout:

At the end of every project there are always minor

items of work that must be taken care of. They may include
little items that have been overlooked, such as the
installation of a robe hook or doorstop, or minor repairs or
adjustments, such as replacing a cracked floor tile. Each of
these items must be addressed before the project is
acceptable to the owner. The project punchout activity is
managed through a project punch list.
206
The Project Closeout

1.1. The Punch List:

Contains all of the work items remaining to be done to

complete the project. The list is a compilation of observations
noted by the owner, designer, and contractor as they conduct
the formal project walk-through.

207
The Project Closeout

2.0. Project Completion:

Every project has a beginning and an end. The notice to
proceed defines the start of the project. However, there are two
steps to defining the end of the project.
2.1. Substantial Completion
2.2. Final Completion

208
The Project Closeout

2.1. Substantial Completion :

Substantial completion occurs after the punch list work has
been completed and is approved by the consultant (engineer).
At this point, the consultant determines that the new facility can
be utilized for its intended purpose and actually issues a formal
certificate of substantial completion. This date is very important
because it marks the official end of the project and establishes
the beginning of the warranty period. Now all payments due to
the contractor are released, with the exception of a small
percentage called retention money.
209
The Project Closeout

2.2. Final Completion :

Final completion is accomplished after all remaining
contract requirements have been met, such as the issuance of
all final paperwork and documentation (warranties, product
manuals, and so on). This step is also certified by the consultant
(engineer) and sets up the release of all remaining payments

due to the contractor.

210
The Project Closeout

3.0 Certificate of Occupancy:

After the issuance of the certificate of substantial
completion, the contractor or applies for certificate of
occupancy. Upon completion of the requirements for occupancy
permit, final inspection will be conducted by the building official.
The building official then issues a certificate of occupancy (CO).
This regulatory device signifies that all life safety code
requirements are met prior to anyone occupying the building.
The primary concern is that the building be safe to occupy. The
owner cannot move in until this certificate is issued. Sometimes
a conditional CO can be issued allowing the owner to occupy a
portion of the facility prior to completion of the entire facility.
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The Project Closeout

4.0 Commissioning:
When you buy a new car, you need a little instruction
about its design and workings before you can operate it.
Likewise, there are many areas of operation throughout a new
facility that need to be explained to the owners. This process is
called commissioning and may be conducted by the general
contractor, by subcontractors under the direction of the general
contractor:
4.1. First part of Commissioning:
4.2. Second part of Commissioning:

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The Project Closeout

4.1. First part of Commissioning:

is a process of testing systems and equipment to make
sure that they are all working properly before turning the facility
over to the owner. This process can be as simple as running the
dishwasher, testing the air conditioner in a new home, or as
complex as starting up huge turbines in a hydroelectric facility.

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The Project Closeout

4.2. Second part of Commissioning:

Deals with training the owner’s personnel in the operation
and maintenance of the equipment and systems installed in the
new facility. Because the contractor is accountable for the
equipment and its operation at least during the warranty period,
it is a very important part of project closeout and should not be
shortchanged. It is in the contractor’s best interest to make sure
that all owner staff charged with operating the new systems are
up to speed regarding their function and receive the proper
operation manuals.

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The Project Closeout

5.0. Final Documentation:

Sticking with the car analogy, when you buy a new car, it is
customary to find an owner’s manual in the glove compartment.
When you build a new facility, there is also a set of documents
delivered to the owner that might compare to an owner’s
manual, except that the product is substantially larger and more
complex than a car.

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The Project Closeout

5.0. Final Documentation:

Some of the documentation associated with the turnover of
a new facility includes the following:
◆◆ Warranties
◆◆ Operation manuals
◆◆ Inspection and testing reports
◆◆ As-built drawings or record drawings
Pulling together all of this paperwork for distribution at the
end of the project can be one of the most tedious aspects of the
job. For this reason, it is always helpful to have a good contract
administrator on the project team.
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Owner Move-In

Finally, you have moved through all the stages of the process and
have turned the keys over to the owner. This is always an exciting time
for the owner. Keep in mind, though, that with all the moving-in
activities come dings, dents, and scrapes to the new finishes. That’s
why it is customary for the contractor to inventory any spare parts and
surplus materials associated with the project, such as a partial gallon
of paint, a half box of floor tiles, or a few ceiling tiles, and leave them
behind. With these extra materials, the owner’s maintenance personnel
can make the touch-up repairs that are inevitable when furniture and
equipment are being pushed around and shoved into place. 217
The Warranty Period

Most construction contracts contained warranties. From a legal

standpoint, there are two types of warranty that the construction
professional must be concerned with:

1. EXPRESS WARRANTIES (written into the contract) - deal mostly with the
workmanship and installations. The following are examples of express warranties
routinely included in construction contracts:

◆ A warranty that work will be performed in a good and workmanlike manner

◆ A warranty that materials will be new and of good quality

◆ A warranty that the work will conform to the requirements of the contract
documents as-built drawings
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The Warranty Period
2. IMPLIED WARRANTIES (established or required by law) - Deal primarily
with the products, materials, and equipment installed in the new facility, such as
appliances, equipment, or other goods typically installed by subcontractors. Most
of these are what are commonly referred to as manufacturer ’s warranties.
However, the contractor is liable to the owner if the product fails. In such a case,
the contractor will first look to the subcontractor and then to the manufacturer to
back up the warranty. The following are examples of implied warranties common
in construction:

◆ A warranty of fitness for a particular purpose (that the goods will serve the
buyer ’s intended use)

◆ A warranty of merchantability of goods (that the goods will be of at least

average quality and conform to any labels or advertising about the product) 219
Project Evaluation

This is the last step in the post-construction stage. Project

evaluation is an opportunity for the construction management
team to debrief the project and consider what worked and what
didn’t work. This very valuable step allows the lessons learned to
be passed on to other project teams. Information regarding
subcontractor and vendor performance, equipment glitches,
inspection snafus, or owner-relations issues are all grist for the
mill. Unfortunately, this important step rarely gets executed. The
team members are all off to the next job, and the wisdom never
gets communicated to the organization as a whole. 220
CABAR, R.B. CARDEJON, J.J.G. MARCELINO, J.S. QUIINTER, V.A.S.

Thank you
GROUP 1 | BSC E 4B/SE | C E 117 | M ODULE - 1 | RE PORT

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