PROJECT AND SITE MANAGEMENT

Construction Practices

Instructor:
Ar.FARAH
 WHAT IS PROJECT?

• A PROJECT IS A SEQUENCE OF UNIQUE, COMPLEX AND

CONNECTED ACTIVITIES HAVING ONE GOAL OR PURPOSE
AND THAT MUST BE COMPLETED BY A SPECIFIED TIME,
WITHIN BUDGET AND ACCORDING TO SPECIFICATIONS.
 PROPERTIES OF A PROJECT

• GOAL ORIENTED

• COORDINATED UNDERTAKING OF INTERRELATED ACTIVITIES

• FINITE DURATIONS WITH CLEAR BEGINNING AND END

 PROJECT MANAGEMENT

• THE DISCIPLINE OF PLANNING, ORGANIZING, SECURING AND MANAGING

RESOURCES TO BRING ABOUT THE SUCCESSFUL COMPLETION OF
SPECIFIC PROJECT GOALS AND OBJECTIVES.
PROJECT MANAGEMENT
Management of field construction projects
• Construction projects involve a great deal of time and
expense.
• Close management control is required to complete projects
within established time and cost limitations.
• During construction process review of management
techniques:
• Control of cost
• Time
• Resources
• Project finance
CONSTRUCTION INDUSTRY
There are several major classifications of construction:
• Housing construction
• Nonresidential building construction
• Heavy construction
• Highway construction
• Utility construction
• Industrial construction
CONSTRUCTION INDUSTRY
These construction types are further divided into many
specialties, such as:
• Electrical
• Concrete
• Excavation
• Piping
• Roofing
CONSTRUCTION INDUSTRY
• Construction work is accomplished by contractors who vary
widely in size and specialty.
• Some contractors choose to concentrate on a particular task or
aspect of the construction project and are therefore referred to
as specialty contractors.
• Others assume broader responsibility for a comprehensive
work package and are referred to as prime contractors.
• Prime contractors will subcontract specific aspects of a project
to the specialty contractors, forming a contractual web of prime
contractors and specialty contractors.
CONSTRUCTION PROJECT
• Construction projects are intricate, time-consuming
undertakings.
• Progressing from initial planning to project completion, the
job passes through successive and distinct stages that demand
input from such disparate areas as:
• Financial organizations and Governmental Agencies
• Engineers, Architects and Lawyers
• Insurance and surety companies
• Contractors and building tradesmen
• Material manufacturers and suppliers
CONSTRUCTION PROJECT
• Construction projects are unique - no two jobs are ever exactly
the same.

• Each structure is tailored to suit its environment, arranged to

perform its own particular function, and designed to reflect
personal tastes and preferences.

• The construction process is subject to highly variable and

unpredictable factors.
CONSTRUCTION PROJECT
The construction team changes from one job to the next, it
typically includes:
• Architects
• Engineers
• Building tradesmen
• Subcontractors
• Material dealers
• and others.
CONSTRUCTION PROJECT
All complexities inherent in different construction sites are part
of construction project, such as:
• Subsoil conditions and Surface topography
• Weather and transportation
• Material supply
• Utilities and services
• Local subcontractors
• Labor conditions, and available technologies
CONSTRUCTION PROJECT
• Construction projects are characterized by their complexity,
diversity and non-standardized nature of their production.
• The use of factory-made modular units may diminish this
individuality but it is unlikely that field construction will
completely adapt to standardized methods and product
uniformity of assembly line production.
PROJECT STAGES

A construction project proceeds in a definite order, the stages

of development are typical.
A. Planning and Definition
B. Design
C. Procurement and Construction
PROJECT STAGES
A. Planning and Definition
Project definition involves establishing broad project
characteristics, such as:
• Owner requirements to establish aspects of the
project
• Location
• Performance criteria
• Size
• Configuration
• Layout
• Equipment
PROJECT STAGES
A. Planning and Definition
• Conceptual planning stops short of detailed design.
• Considerable amount of preliminary architectural or
engineering work may be required.
• The definition of the work is the responsibility of
the owner.
• Design professionals may be involved to provide technical
assistance and advice.
PROJECT STAGES
B. Design
• The design phase involves architectural and engineering
design of the entire project.
• It culminates in the preparation of final working drawings and
specifications for the total construction program.
• Design, procurement, and construction often overlap, with
procurement and construction beginning on certain segments
as soon as the design is completed.
PROJECT STAGES
C. Procurement and Construction
• Procurement refers to ordering, expediting, and delivering of
key project equipment and materials, especially those that
may involve long delivery periods.
• This function may or may not be handled separately from the
construction process itself.
PROJECT STAGES

C. Procurement and Construction

• Construction is the process of physically erecting the project
and putting materials and equipment into place.
• It involves providing manpower, construction equipment,
materials, supplies, supervision, and management necessary
to accomplish the work.
OWNER
• The owner can be public or private, is the instigating party
that gets the project financed, designed, and built.
• Public owners are public bodies that range from:
• Federal government
• Municipal entities
• Multiplicity of local boards
• Commissions
• Authorities
OWNER
• Public projects are paid for by appropriations, bonds, or other
forms of financing and are built to perform a defined public
function.
• Public owners must proceed in accordance with applicable
statutes and administrative directives pertaining to:
• Advertising for bids
• Bidding procedure
• Construction contracts
• Contract administration
• Other matters relating to design and construction process
OWNER
• Private owners may be individuals, partnerships,
corporations, or various combinations.
• Most private owners have the structure built for their own use:
business, habitation, or otherwise.
• Some private owners do not intend to be the end users of the
constructed facility they plan to sell, lease, or rent the
completed structure to others.
• These end users may or may not be known to the owners at
the time of construction.
ARCHITECT-ENGINEER

• The architect-engineer is also known as the design

professional, and is the party or firm that designs the project.
• The architect-engineer can occupy a variety of positions with
respect to the owner for whom the design is undertaken.
• Public agencies and large corporate owners maintain their
own in-house design capability.
ARCHITECT-ENGINEER
• Traditionally, the architect-engineer is a private and
independent design firm that accomplishes the design under
contract with the owner.
• Where the ‘‘design-construct’’ mode of construction is used,
the owner contracts with a single party for both design and
construction.
• In such cases the architect-engineer is a branch of, or is
affiliated in some way with the construction contractor.
PRIME CONTRACTOR

• A prime contractor is also known as General Contractor (GC).

• It is the firm or entity that is in prime contract with the owner
for the construction of a project, either entirely or for some
portion.
• The owner may choose to use a single prime contract or
several separate prime contracts.
PRIME CONTRACTOR
Single-Contract
• Under single-contract system, the owner awards
construction of the entire project to one prime contractor.
• In this situation, the contractor brings together all diverse
elements and inputs of construction process into a single,
coordinated effort and assumes full, centralized
responsibility for delivery of project, constructed in
accordance with contract documents.
• The prime contractor is fully responsible to the owner for the
performance of the subcontractors and other third parties to
the construction contract.
PRIME CONTRACTOR
Separate Contracts
• When separate contracts are used, the project is not
constructed under the centralized control of a single prime
contractor.
• Several independent contractors work on the project
simultaneously, and each is responsible for a designated
portion of the work.
• Each of the contractors is in contract with the owner and each
functions independently of the others.
PRIME CONTRACTOR
Separate Contracts
• Each of these contractors is a prime contractor.
• Responsibility for coordination of these contractors may be
undertaken by:
• The owner
• The architect-engineer
• A construction manager
• or one of the prime contractors who is paid extra to perform
certain overall job management duties.
COMPETITIVE BIDDING
• The owner selects a prime contractor on basis of competitive
bidding, negotiation, or a combination of the two.
• A large proportion of the construction is done by contractors
that obtain their work in bidding competition with other
contractors.
• The competitive bidding of public projects is often
required by
law and is standard procedure for public agencies.
• All public construction work is done by this method.
COMPETITIVE BIDDING
• To bid a project, the contractor estimates how much the
structure will cost using the architect-engineer’s drawings and
specifications for calculations.
• The contractor adds reasonable profit to this cost and
guarantees to do the entire job for the stated price.
• Bid prices quoted by bidding contractors are the basis for
selection of a successful contractor.
• The low bidder usually receivies the contract award.
COMPETITIVE BIDDING

• Most bidding documents stipulate that the work shall be

awarded to the ‘‘lowest responsible bidder.’’
• This allows the owner to reject the proposal of a bidding
contractor if contractor is judged as unqualified for some
reason.
• If the bid is selected, contractor is obligated to complete the
work in exchange for the contract amount.
COMPETITIVE BIDDING
• Competitive bidding can be used where successful contractor
is not determined on estimated cost of construction.
• Where contract involves payment of prescribed fee to
contractor, amount of fee is used as a basis of competition
among contractors.
• Construction management services are obtained by an
owner using the fees proposed by the different bidders as the
basis for contract award.
• This is referred to as a fee-based bid.
NEGOTIATED CONTRACTS
• It can be advantageous for an owner to negotiate a contract for
its project with a preselected contractor or group of
contractors.
• It is common practice for an owner to forgo the competitive
bidding process and handpick a contractor based on its
reputation and overall qualifications to do the job.
• A contract is negotiated between the owner and the chosen
contractor.
• Such contracts can include any terms and provisions that are
mutually agreeable to the parties.
• Most negotiated contracts are of the cost-plus-fee type.
COMBINED BIDDING AND NEGOTIATION
• An owner sometimes will combine elements of both
competitive bidding and negotiation.
• One such process is to have a bid where competing contractors
are required to submit their qualifications along with bids and
are encouraged to tender suggestions as to how the cost of
the project could be reduced.
• The owner then interviews those contractors whose proposals
appear most favorable and negotiates a contract with one of
them.