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Planning Masterclass Module

The document outlines a training course on project management techniques PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method), focusing on their definitions, comparisons, and applications in construction management. It provides a structured course outline, expectations, and guidelines for participants, along with detailed steps for creating and managing PERT charts. The key differences between PERT and CPM are highlighted, emphasizing their suitability for different types of projects and activities.

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jessie.e.delgado
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© All Rights Reserved
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0% found this document useful (0 votes)
48 views182 pages

Planning Masterclass Module

The document outlines a training course on project management techniques PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method), focusing on their definitions, comparisons, and applications in construction management. It provides a structured course outline, expectations, and guidelines for participants, along with detailed steps for creating and managing PERT charts. The key differences between PERT and CPM are highlighted, emphasizing their suitability for different types of projects and activities.

Uploaded by

jessie.e.delgado
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

PLANNING

SCHEDULE
ENGINEERING
MANAGEMENT
MASTERCLASS
USING PERT/CPM
METHOD
C O N S T R U C T I O N T R A I N I N G C O U R S E

P R E S E N T E D B Y :
E N G R . J O N A T H A N D . C O R T E Z
Page
01
GREAT BUILDER

WELCOME
REMARKS!

ALL RIGHTS RESERVED BY PROMPT LEARNING ACADEMY 2025


WEBINAR GUIDELINES
✓ Keep your microphone muted unless
speaking
✓ Prepare for interaction
✓ Use headphones for better audio clarity
✓ Use the chat feature responsibly
✓ Ensure a stable internet connection
✓ Maintain professional conduct
✓ Engage and enjoy the learning process
✓ scheduled breaks for better focus

ALL RIGHTS RESERVED BY PROMPT LEARNING ACADEMY 2025


EXPECTATIONS

✓TO LEARN IN A PROFESSIONAL WAY.


✓TO BE ABLE TO APPLY THE LEARNINGS
IN ACTUAL INDUSTRY.
✓TO GAIN A NEW SET OF SKILLS

ALL RIGHTS RESERVED BY PROMPT LEARNING ACADEMY 2025


PART 1
SCHEDULE
PERT AND CPM
MANAGEMENT
WORKFLOW
USING PERT/CPM
METHOD
C O N S T R U C T I O N T R A I N I N G C O U R S E

P R E S E N T E D B Y :
E N G R . J O N A T H A N D . C O R T E Z
Page
01
COURSE OUTLINE
➢ PERT AND CPM INTRODUCTION
➢ PERT AND CPM COMPARISON
➢ PERT AND CPM GENERATION
A)CREATION OF PERT CHART
B)CREATION OF CPM METHOD
➢ EXAMPLE SCHEDULE
➢ SUMMARY ANALOGY OF
METHODS
"The construction
of a building
requires a solid
construction.“

PERT/CPM
INTRODUCTION
Page
03
PERT
• Definition of PERT
• PERT is an acronym for Program (Project) Evaluation and
Review Technique, in which planning, scheduling, organizing,
coordinating and controlling uncertain activities take place. The
technique studies and represents the tasks undertaken to
complete a project, to identify the least time for completing a
task and the minimum time required to complete the whole
project. It was developed in the late 1950s. It is aimed to reduce
the time and cost of the project.

• PERT uses time as a variable which represents the planned


resource application along with performance specification. In
this technique, first of all, the project is divided into activities
and events. After that proper sequence is ascertained, and a
network is constructed. After that time needed in each activity is
calculated and the critical path (longest path connecting all the
events) is determined.
CPM
• Definition of CPM
• Developed in the late 1950s, Critical Path Method or CPM is an
algorithm used for planning, scheduling, coordination and
control of activities in a project. Here, it is assumed that the
activity duration is fixed and certain. CPM is used to compute
the earliest and latest possible start time for each activity.
• The process differentiates the critical and non-critical activities
to reduce the time and avoid the queue generation in the
process. The reason for the identification of critical activities is
that, if any activity is delayed, it will cause the whole process to
suffer. That is why it is named as Critical Path Method.
• In this method, first of all, a list is prepared consisting of all the
activities needed to complete a project, followed by the
computation of time required to complete each activity. After
that, the dependency between the activities is determined. Here,
‘path’ is defined as a sequence of activities in a network. The
critical path is the path with the highest length.
"The construction
of a building
requires a solid
construction.“

PERT/CPM
COMPARISON
Page
03
PERT VS CPM
Project management can be understood as a
systematic way of planning, scheduling, executing,
monitoring, controlling the different aspects of the
project, so as to attain the goal made at the time of
project formulation. PERT and CPM are the two
network-based project management techniques,
which exhibit the flow and sequence of the activities
and events.

Program (Project) Management and Review


Technique (PERT) is appropriate for the projects
where the time needed to complete different activities
are not known.
On the other hand, the Critical Path
Method or CPM is apt for the projects which are
recurring in nature.

The two scheduling methods use a common approach


for designing the network and for ascertaining its
critical path. They are used in the successful
completion of a project and hence used in conjunction
with each other. Nevertheless, the truth is that CPM is
different from PERT in a way that the latter
concentrates on time while the former stresses on the
time-cost trade-off.
COMPARISON CHART
BASIS FOR COMPARISON PERT CPM
CPM is a statistical technique of
PERT is a project management
project management that
Meaning technique, used to manage
manages well defined activities
uncertain activities of a project.
of a project.
A technique of planning and A method to control cost and
What is it?
control of time. time.
Orientation Event-oriented Activity-oriented
Evolved as Research &
Evolution Evolved as Construction project
Development project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non-critical
No differentiation Differentiated
activities
Research and Development Non-research projects like civil
Suitable for
Project construction, ship building etc.
Crashing concept Not Applicable Applicable
KEY DIFFERENCES PERT VS CPM
➢PERT is a project management technique, whereby planning,
scheduling, organising, coordinating and controlling uncertain
activities are done. CPM is a statistical technique of project
management in which planning, scheduling, organising,
coordination and control of well-defined activities take place.
➢PERT is a technique of planning and control of time. Unlike CPM,
which is a method to control costs and time.
➢While PERT is evolved as a research and development project, CPM
evolved as a construction project.
➢PERT is set according to events while CPM is aligned towards
activities.
➢A deterministic model is used in CPM. Conversely, PERT uses a
probabilistic model.
➢There are three times estimates in PERT, i.e. optimistic time (to),
most likely time, pessimistic time (tp). On the other hand, there is
only one estimate in CPM.
➢ PERT technique is best suited for a high precision time
estimate, whereas CPM is appropriate for a reasonable time
estimate.
➢ PERT deals with unpredictable activities, but CPM deals with
predictable activities.
➢ PERT is used where the nature of the job is non-repetitive. In
contrast to, CPM involves the job of repetitive nature.
➢ There is a demarcation between critical and non-critical
activities in CPM, which is not in the case of PERT.
➢ PERT is best for research and development projects, but CPM
is for non-research projects like construction projects.
➢ Crashing is a compression technique applied to CPM, to
shorten the project duration, along with the least additional
cost. The crashing concept is not applicable to PERT.
"The construction
of a building
requires a solid
construction.“

PERT/CPM
GENERATION
Page
03
IMPORTANT
TERMINOLOGIES
PREDECESSOR TASK
task whose start and finish a work item or
date determines the start or activity with a
finish date of its successor specific purpose
task. The Predecessor is the related to the
task completed prior to the larger goal
current task.

SUCCESSOR ACTIVITIES
a scheduled phase
is an activity that follows in a project plan
another activity – not in the with a distinct
chronological sense but beginning and end.
according to their
dependency to each other.

Page
05
ACTIVITIES RELATIONSHIP TYPES

• A Logical Relationship in which a Successor Activity cannot


Finish to Start
start until a Predecessor Activity has finished

• A Logical Relationship in which a Successor Activity cannot


Finish to Finish
finish until a Predecessor Activity has finished

• A Logical Relationship in which a Successor Activity cannot


Start to Start
start until a Predecessor Activity has started

• A Logical Relationship in which a Successor Activity cannot


Start to Finish
start until a Predecessor Activity has finished
CREATION
OF PERT
CHART

Page
08
Construction Presentations

How a PERT
CHART works?
A PERT chart works by visually representing a project’s tasks and
the dependencies connected to each one. You might use one to
create an initial project schedule and estimated timeline to share
with project stakeholders before the project actually begins.
Creating a project roadmap such as a PERT chart can help you
accomplish several project planning activities, including:

•Getting schedule and timeline signoff from leadership


•Communicating project objectives to stakeholders
•Visually mapping out a complex project and its interdependencies
•Estimating the time needed to complete individual tasks
In order to make the most of your PERT chart, you should first
understand the steps needed to complete one and how to visually
map out your diagram.
Page
05
Construction Presentations

How to make a PERT CHART?


To create a PERT chart, follow the five steps of the process lifecycle,
which includes everything from mapping out project scope and
identifying tasks to managing project completion.

Page
05
STEP 1 IDENTIFY PROJECT TASK
The first step in creating a successful PERT chart involves
identifying and collecting necessary project information
and tasks. You can begin the project planning stage
similar to how you’d typically start the initial project
management phase. This can include:
•A business case
•A communication plan
•An initial kickoff meeting
Early planning ensures that you’re prepared to defined
dependencies and connect tasks during the next phases.
STEP 2DEFINE TASK DEPENDENCIES
A task dependency is a task or milestone that relies on
another task to be completed before the task at hand can be
started. This is sometimes referred to as a logical relationship
and is often used in a work breakdown structure.
Creating dependencies can help you properly track work,
ensure tasks are completed, and establish clear
communication. For complex projects, plan timelines and
project duration properly ahead of time.
In a PERT diagram, dependencies are visualized by connecting
and numbering tasks. While not as comprehensive as other
methods like a work breakdown structure, it helps to show a
high-level visualization of tasks and the work needed to
complete them.
STEP 3 CONNECT PROJECT TASKS
Once task dependencies have been created, you can work on creating
your PERT chart by connecting project tasks to one another. These
connections consist of arrows, which represent tasks, and nodes, which
represent events or milestones.
For example, place parent events within your
nodes (represented as numbered circles or
squares) and draw task arrows to represent
the dependencies needed to complete your
events.

This layout provides a simple project structure


that, while not overly specific, is easily
comprehensible for project stakeholders.
STEP 4 ESTIMATE PROJECT TIME FRAME
Now it’s time to estimate your overall project time frame using the critical path method (CPM) and
the PERT formula. The critical path is the longest sequence of tasks that must be completed to
successfully finish an entire project.
The objective is to find the longest path that will take the most time to complete in order to
estimate the shortest overall project duration. Time estimates can be calculated based on the
following:
•Optimistic time: The minimum amount of time needed to accomplish a task.
•Pessimistic time: The maximum amount of time needed to accomplish a task.
•Most likely time: The best estimate of how long it will likely take to accomplish a task.
You can use the PERT formula to calculate the expected duration of a task and completion time
using: (O + (4 × M) + P) ÷ 6. This can be measured by minutes, hours, days, or even weeks.
For example, if the optimistic time is 30 minutes, the pessimistic time is 60 minutes, and the
most likely time is 45 minutes, the PERT formula would be: (30min + (4 × 45min) + 60min) ÷ 6
= 45 minutes.
Once you’ve calculated the expected time per task, you can then add each of the estimates of
your critical path together to get an average project timeline.
STEP 5 MANAGE TASK PROGRESS
The final step in creating a PERT chart is to manage task
progress to project completion. This can be done by closing
dependencies and mitigating issues along the way until all tasks
and project milestones are completed.

Remember that a PERT diagram should be updated in real time


as changes occur. This could be paired with a change control
process, which helps map and communicate project changes.
Once all tasks within the project have been completed, you can
archive materials in a shared space to be referred to later on if
needed.
PERT chart example

Now that you understand the five steps of a PERT chart, it’s time to create one of
your own. Since all diagrams differ depending on the complexity and time frame
of a given project, yours might look slightly different.
To start your chart, begin by:

•Drawing your numbered nodes: Remember, these are the parent tasks of your
project which, when completed, will make up the project at hand. Your diagram
may have any number of tasks, but 10 is a good number to start with.
•Connect your nodes to tasks: Draw arrows to represent task dependencies.
These tasks are what need to be done for the events to be completed. Your
diagram should have a clear beginning and end, though the middle may look
more complex.
Here’s an example of what your PERT chart should look like:
Here is a breakdown of common terminology you may include in your PERT chart
and the definition for each:
•Nodes: Nodes represent project events. These events are the large components
that make up your project. For example, when launching a website design, a
node might represent a new logo design.
•Tasks: Your tasks are what need to be completed in order for your nodes to be
implemented. For example, a task might represent designing three logo
mockups.
•Dependencies: A dependency is when a task is connected to another task. These
tasks rely on one another and one cannot be completed without the other.
•Dependencies without resources: A dependency without resources is one that,
while connected to another, doesn’t have tangible tasks that need to be
completed. For example, while a product launch and landing page might be
correlated, no one task is connected to each.
PERT charts can be created using a variety of tools, including project
management software. Tools can help you properly plan, visualize, and set up
task dependencies and reminders in order to track project progress and easily
spot bottlenecks.
WHEN TO USE PERT CPM?
Project managers use PERT charts to evaluate and complete a given project. But with so
many other methods to choose from, how does a PERT diagram compare?
For starters, a PERT chart is a good method when you’re looking to evaluate the timeline,
resources needed, and a project’s critical path. Let’s look at each of these a little closer.
•To determine the critical path: One of the key features of a PERT chart that sets it apart
from other methods is its ability to determine a project’s critical path. This is important
when visualizing the overall timeline of a project.
•To evaluate resources: With the unique features a PERT chart offers, you can easily display
which tasks require resources and which don’t. This saves both you and project
stakeholders time by having that information upfront and accessible.
•To estimate time: Since a PERT chart evaluates both individual task duration and overall
project duration, it’s a great tool when you need to understand the expected timeline
during the initial project planning phase.
Overall, creating a PERT chart is a good option for a simple project plan that can easily be
shared with team members. Use this chart to quickly share resources and timelines.
PERT CHART VS. GANTT
CHART
PERT charts and Gantt
charts are often
confused, though they
have a few key
differences. Not only
do they differ in their
visual appearance, but
they also provide
different features
depending on what
your team needs.
Here are a few key features to note when deciding on which one is right for you:
[Link] charts are flowcharts while Gantt charts are bar graphs: One of the biggest
differences is their visual layout. While Gantt charts take on a traditional bar chart
approach, PERT charts are less structured in appearance and take on different layouts
depending on the project.
[Link] charts offer organization while PERT charts offer customization: Gantt charts
are more structurally organized. On the other hand, PERT charts allow simple layout
customization which is better for high-level project needs.
[Link] charts can be used before the project begins: Since PERT charts offer a simple
project plan and timeline layout, they’re often used as visual guides during the project
kickoff. Project managers then use another method, like a work breakdown structure
or Gantt chart, to specifically map project tasks and dependencies.
In general, Gantt charts are more popular for mapping out project activities and tasks
throughout the project lifecycle while PERT charts are popular for time mapping in the
initial project stages. They can be used separately or together to create a
comprehensive plan.
CREATION
OF CPM
METHOD

Page
08
WHY USE THE CRITICAL PATH METHOD?
CPM can provide valuable insight on how to plan projects, allocate
resources, and schedule tasks.
Here are some reasons why you should use this method:
•Improves future planning: CPM can be used to compare expectations
with actual progress. The data used from current projects can inform
future project plans.
•Facilitates more effective resource management: CPM helps project
managers prioritize tasks, giving them a better idea of how and where
to deploy resources.
•Helps avoid bottlenecks: Bottlenecks in projects can result in lost
valuable time. Plotting out project dependencies using a network
diagram, will give you a better idea of which activities can and can’t
run in parallel, allowing you to schedule accordingly.
How to find the critical path
Finding the critical path involves looking at the duration of critical and non-critical tasks.
Below is a breakdown of the steps with examples.

STEP 1 LIST ACTIVITIES


Use a work breakdown structure to list all the project activities or tasks required to
produce the deliverables. The list of activities in the work breakdown structure serves as
the foundation for the rest of the CPM.
For example, let’s say the marketing team is producing a new interactive blog
post. Here are some tasks that might be in the work breakdown structure:

Once you have a high-level idea of everything that needs to be done, you can start
identifying task dependencies.
STEP 2IDENTIFY DEPENDENCIES
Based on your work breakdown structure, determine the tasks
that are dependent on one another. This will also help you
identify any work that can be done in parallel with other tasks.
Here are the task dependencies based on the example above:
•Task B is dependent on A
•Task C is dependent on B
•Tasks C and D can run in parallel
•Task E is dependent on D
•Task F is dependent on C, D, and E
The list of dependent tasks is referred to as an activity
sequence, which will be used to determine the critical path.
STEP 3 CREATE A NETWORK DIAGRAM
The next step is to turn the work breakdown
structure into a network diagram, which is a
flowchart displaying the chronology of
activities. Create a box for each task and use
arrows to depict task dependencies.
You’ll add other time-bound components to
the network diagram until you have the
general project schedule figured out.
STEP 4 ESTIMATE TASK DURATION
To calculate the critical path, the longest sequence of critical tasks, you first need to
estimate the duration of each activity.
To estimate the duration, try:
•Making educated guesses based on experience and knowledge
•Estimating based on previous project data
•Estimating based on industry standards
Alternatively, try using the forward pass and backward pass technique:
•Forward pass: This is used to calculate early start (ES) and early finish (EF) dates by
using a previously specified start date. ES is the highest EF value from immediate
predecessors, whereas EF is ES + duration. The calculation starts with 0 at the ES of the
first activity and proceeds through the schedule. Determining ES and EF dates allows for
early allocation of resources to the project.
•Backward pass: This is used to calculate late start (LS) and late finish (LF) dates. LS is LF
- duration, whereas LF is the lowest LS value from immediate successors. The calculation
starts with the last scheduled activity and proceeds backward through the entire
schedule.
The early and late start and end dates can then be used to calculate float, or scheduling
flexibility of each task.
STEP 5 CALCULATE THE CRITICAL PATH
Calculating the critical path can be done manually, but you can save
time by using a critical path algorithm instead.
Here are the steps to calculate the critical path manually:
Step 1: Write down the start and end time next to each activity.
•The first activity has a start time of 0, and the end time is the duration
of the activity.
•The next activity’s start time is the end time of the previous activity,
and the end time is the start time plus the duration.
•Do this for all the activities.
Step 2: Look at the end time of the last activity in the sequence to
determine the duration of the entire sequence.
Step 3: The sequence of activities with the longest duration is the
critical path.
Using the same example above, here’s what the critical path diagram
might look like:
Once you have the critical path figured out, you can
build the actual project schedule around it.
STEP 6 CALCULATE THE FLOAT
Float, or slack, refers to the amount of flexibility of a given task. It indicates
how much the task can be delayed without impacting subsequent tasks or
the project end date.
Finding the float is useful in gauging how much flexibility the project has.
Float is a resource that should be used to cover project risks or
unexpected issues that come up.
Critical tasks have zero float, which means their dates are set. Tasks with
positive float numbers belong in the non-critical path, meaning they may
be delayed without affecting the project completion date. If you’re short on
time or resources, non-critical tasks may be skipped.
Calculating the float can be done with an algorithm or manually. Use the
calculations from the section below to determine the total float and free
float.
Total float vs. free float
Here’s a breakdown of the two types of float:
•Total float: This is the amount of time that an activity can be delayed from the early start date
without delaying the project finish date or violating a schedule constraint. Total float = LS - ES
or LF - EF
•Free float: This refers to how long an activity can be delayed without impacting the following
activity. There can only be free float when two or more activities share a common successor.
On a network diagram, this is where activities converge. Free float = ES (next task) - EF
(current task)
There are a few good reasons why project managers benefit from having a good
understanding of float:
•It keeps projects running on time: Monitoring a project’s total float allows you to determine
whether a project is on track. The bigger the float, the more likely you’ll be able to finish early
or on time.
•It allows you to prioritize: By identifying activities with free float, you’ll have a better idea of
which tasks should be prioritized and which ones have more flexibility to be postponed.
•It’s a useful resource: Float is extra time that can be used to cover project risks or unexpected
issues that come up. Knowing how much float you have allows you to choose the most
effective way to use it.
ADDITIONAL APPLICATIONS
Compress schedules
Though not ideal, there are times when project deadlines may be pushed
up. In those situations, there are two schedule compression techniques you
can use: fast tracking and crashing.
[Link] tracking: Look at the critical path to determine activities that can be
performed simultaneously. Running parallel processes will speed up the
overall duration.
[Link]: This process involves allocating more resources to speed up
activities. Before obtaining more resources, make sure that it would still be
within the project scope and let the stakeholders know of any changes.
Having the critical path plotted out can help you choose the appropriate
strategy to meet updated deadlines.
Resolve resource shortages

Keep in mind that CPM doesn’t take resource availability into


account. When there is a resource shortage, like an overbooked
team member or lack of equipment, you can use resource
leveling techniques to solve the issue.
These techniques aim to resolve resource overallocation issues and
ensure that a project can be completed with the resources that are
currently available.
Resource leveling works by adjusting project start and end dates, so
you may have to readjust the critical path or apply this technique to
activities with float.
Compile data for future use

The schedule created from CPM is subject to change since you’re


working with educated estimates for activity durations. You can
compare the original critical path to the actual critical path as the
project runs.
This data can be used as a reference to get more accurate task
duration estimates for future projects.
PERT VS CPM
CPM and Project Evaluation and Review Technique (PERT) were both developed
in the 1950s. PERT is used to estimate uncertainty around project activities by
applying a weighted average of optimistic and pessimistic. It evaluates the time
needed to complete an activity.
PERT uses three estimates to find a range for the duration of an activity:
[Link] likely estimate (M)
[Link] (O)
[Link] (P)
The calculation for PERT is: Estimated time = (O + 4M + P) / 6
The main difference between PERT and CPM is their level of certainty around
activity durations—PERT is used to estimate the time required to complete
activities, whereas CPM is used when the activity durations are already
estimated.
Let’s see how the two techniques compare:
•PERT manages uncertain project activities, CPM manages predictable
project activities.
•PERT focuses on meeting or minimizing project duration, CPM focuses
on time-cost-trade offs.
•PERT is a probabilistic model, CPM a deterministic model.
•PERT has three estimates for each activity, CPM just one.
Differences aside, both PERT and CPM analyze the following
components:
•List of required tasks
•Estimated duration for each task
•Task dependencies
The two techniques can be used in tandem to boost their effectiveness.
You can use PERT to get more realistic estimates of task durations
before proceeding to calculate the critical path and floats.
CPM VS. GANTT CHART
Gantt charts are horizontal bar charts that map out project activities, which can be
tracked against a set timeline. Both CPM and Gantt charts show the dependencies
between tasks.
Let’s go over some differences between the two tools:
CPM
•Visualizes critical and non-critical paths and calculates project duration
•Displayed as network diagram with linked boxes
•Doesn’t show resources required
•Plots activities on network diagram without timescale
Gantt chart
•Visualizes how project activities are progressing
•Displayed as horizontal bar chart
•Shows resources required for each activity
•Plots activities on a timescale
Gantt charts can be paired with CPM to track critical paths over time to keep your
project running on schedule.
"The construction
of a building
requires a solid
construction.“

EXAMPLE SCHEDULE
Page
03
A
TABULATE LOGICAL
TASK/EVENTS

TABULATION
Page
08
TABLE WBS ABC PROJECT DURATION PREDECESSORS
1 PreConstruction
1.1 General Requirements
A 1.1.1 Downpayment 1d
B 1.1.2 Permit Acquisition 1d
C 1.1.3 Mobilization 5d A,B
D 1.1.4 Survey Works 2d C
2 Construction
2.1 Earthworks
E 2.1.1 Clearing & Grubbing 2d D
F 2.1.2 Excavation 3d E
G 2.1.3 Hauling & Disposal 1d F
Backfilling &
3d G,K
H 2.1.4 Compaction
2.2 Civil Works
2.2.1 Substructure
I [Link] Installation of Rebar 4d F
J [Link] Installation of Formworks 3d I
K [Link] Concrete Pouring 1d K
2.2.2 Superstructure
L [Link] Installation of Rebar 4d H
M [Link] Installation of Formworks 3d L
N [Link] Concrete Pouring 1d M
2.3 Archi Works
O 2.3.1 Wet Works 7d N
P 2.3.2 Dry Works 8d O
Specialty/ Finishing
7d P
Q 2.3.3 Works
2.4 MEPF Works
R 2.4.1 Installation of 1st Fix 2d I SS
S 2.4.2 Installation of 2nd Fix 3d R,O
T 2.4.3 Installation of 3rd Fix 2d S,QFF
3 Post Construction
U 3.1 Punchlisting & Cose Out 5d Q,T
B
DETERMINE TASK
DURATION

DURATION
ESTIMATES
Page
08
A-C-D-E-F-G-H-L-M-N-O-P-Q-U= 52 DAYS
A-C-D-E-F-G-H-L-M-N-O-P-T-U= 47 DAYS
A-C-D-E-F-G-H-L-M-N-O-S-T-U= 42 DAYS
A-C-D-E-F-I-J-K-H-L-M-N-O-P-T-U=54 DAYS
A-C-D-E-F-I-J-K-H-L-M-N-O-S-T-U= 49 DAYS
B-C-D-E-F-G-H-L-M-N-O-P-Q-U= 52 DAYS
B-C-D-E-F-G-H-L-M-N-O-P-T-U= 47 DAYS
B-C-D-E-F-G-H-L-M-N-O-S-T-U= 42 DAYS
B-C-D-E-F-I-J-K-H-L-M-N-O-P-T-U= 54 DAYS
B-C-D-E-F-I-J-K-H-L-M-N-O-S-T-U= 49 DAYS
A-C-D-E-F-R-S-T-U= 25 DAYS
B-C-D-E-F-R-S-T-U= 25 DAYS
CONSTRUCT
C
INDIVIDUAL
NETWORK
NETWORK
DIAGRAMS
Page
08
S G H L M N
A F
T C D E K
A
B F I J
R
T

F
R
Q
P
N O P T U E
N
O D
S
R
CRITICAL PATH
S G H L M N
A F
T C D E K
A
B F I J
R
T

F
R
CRITICAL PATH
Q
P
N O P T U E
N
O D
S
R
D
ANALOGY
SUMMARY
IN CONCLUSION
The difference between these two
project management tools is getting
blurred as the techniques are merged
with the passage of time. That is why,
in most projects, they are being used as
a single project. The primary point that
distinguishes PERT from CPM is that the
former gives the extreme importance of
time, i.e. if the time is minimized,
consequently the cost will also be
reduced. However, cost optimization is
the basic element, in the latter.
PART 2
SCHEDULE
PRODUCTIVITY
RATESMANAGEMENT
USING PERT/CPM
METHOD
C O N S T R U C T I O N T R A I N I N G C O U R S E

P R E S E N T E D B Y :
E N G R . J O N A T H A N D . C O R T E Z
Page
01
Construction Presentations

COURSE OUTLINE
➢Introduction to
Productivity Rates
Construction Activity
Workflow
➢ Construction Scope of
Works
➢ Productivity Tables
➢ Sample Computations
➢ Datas Assembly in
Page
Softwares
02
"The construction
of a building
requires a solid
construction.“

PRODUCTIVITY
RATES
INTRODUCTION Page
03
LABOR/MEN
MEN.

These area different members of the


organization starting from the very top of the
last workman in the enterprise.
TYPES OF LABOR

•UNSKILLED
•SEMI-SKILLED
•SKILLED
•PROFESSIONAL LABOR
UNSKILLED LABORS
SEMI-SKILLED LABORS
SKILLED LABORS
PROFESSIONAL LABORS
"The construction
of a building
requires a solid
construction.“

SCOPE OF WORKS
SCOPE OF WORKS
• The Scope of Work (SOW)
is the area in an
agreement where the work
to be performed is
described. The SOW should
contain any milestones,
reports, deliverables, and
end products that are
expected to be provided
by the performing party.
I. General Requirements
a. Mobilization, Materials Handling
a. Site Clearing
b. Temporary Facilities
c. Demolition
d. Excavation
e. Demobilization
f. Hauling
II. Concrete Works
a. Foundation (Excavation, Pouring of concrete, steel
fabrications) b. Footing (Excavation, pouring of concrete, steel fabrications)
c. Wall Footing (Excavation, pouring of concrete, steel fabrications)
d. Tie Beams (Excavation, formworks, pouring of concrete, steel fabrications)
e. Columns (Formworks, scaffolding, pouring of concrete, steel fabrications)
f. Beams (Formworks, scaffolding, pouring of concrete, steel fabrications)
g. Roof Beams (Formworks, scaffolding, pouring of concrete, steel fabrications)
h. Concrete Slab Works (Formworks, scaffolding, poring of concrete, steel
fabrications)
i. Canopies
j. Counter Top
III. Masonry Works
a. CHB Laying and CHB reinforcements
b. Brick Works (Limited to conservative finish)
c. Stone Works (Limited to conservative finish)
IV. Roofing and Tinsmitry
a. Truss work
b. Roofing Installations (.40mm thick Rib Type Roofing)
c. Gutter Installations (Colored S-gutter)
V. Finishing Works
a. Plastering
b. Ceiling Works ( Limited to conservative finish)
c. Tile Works
-Ground Floor common areas (Granite Tiles .60x.60m)
-Toilet and Bath (.20x.30 and .20x.20m ceramic tiles)
-Counter Top (Granite Tiles .60x.60m)
-Laminated Flooring for al l rooms
-Second floor common areas (Granite Tiles .60x.60m)
d. Painting Works (Interior and exterior painting)
e. Carpentry works , Cabinets(Limited to conservative finish)
f. Doors (Panel and flush doors, aluminum framed sliding doors, hardware)
g. Windows (Aluminum framed sliding, awning and fixed windows)
XV. Electrical Works
a. Electrical rough-ins, power and
lighting lines
b. Main entrance, Panel board
XVI. Sanitary Works
a. Septic Vault
b. Sanitary lines
c. Installation of fixtures
d. Storm drain
XVII. Plumbing Works
a. Cold Water line installations
IX. HVAC Works
a. Aircon installations
"The construction
of a building
requires a solid
construction.“

PRODUCTIVITY
TABLES
EXCAVATION

BACKFILL
EXCAVATION

TRENCHING
EXCAVATION

TRENCHING
CLEARING & GRUBBING
ROOFING AND SIDINGS
CONCRETING WORKS
REBAR WORKS
FORMWORKS
FORMS FABRICATIONS WORKS
CARPENTRY WORKS
DOORS/WINDOWS
PAINTING
STRUCTURAL STEEL
STEEL ERECTIONS
MASONRY WORKS
"The construction
of a building
requires a solid
construction.“

SAMPLE
COMPUTATIONS
Page
03
•A. SAMPLE
EXCAVATION

•GIVEN
TOTAL VOLUME
EXCAVATION:
50 CU.M
Construction Presentations

PRODUCTIVITY RATES

DESCRIPTION MANOHOUR/UNIT UNIT

EXCAVATION

HAND 6.00 MH/CU.M


FORMULA

SOLUTION
EXCAVATION
50 CU.M X 6.00 MH /CUM = 300 MHRS DESCRIPTION
MANOHOUR/
UNIT
UNIT
= 300 MANHOURS / 12 MAN
EXCAVATION
= 25 HRS/ 8 HRS
HAND 6.00 MH/CU.M
= 3.13 DAYS X 1.20
= 3.75 = 4 DAYS

TOTAL LABOR COST:


12 MAN
12 MAN (PHP 500 EACH)= PHP 6,000/DAY 4 DAYS
THEREFORE IN 4 DAYS = PHP 24,000 50 CU.M
•B. SAMPLE MASONRY

•GIVEN
TOTAL VOLUME
WALL AREA ( 6”):
10 SQ.M
Construction Presentations

PRODUCTIVITY RATES
FORMULA

SOLUTION
LAYING
MANOHOUR/
10 SQ.M X 0.1428 /DAY = 1.428 DAYS DESCRIPTION
UNIT
UNIT

= 1.428DAYS = 1.5 DAYS LAYING 7.00-9.00 SQM/DAY


TOOLING 11-14 SQM/DAY
PLASTERING 8-10 SQM/DAY

TOTAL LABOR COST FOR LAYING:


1 MAN-
2 MAN (PHP 800+650 EACH)= PHP 1,450/DAY
THEREFORE IN 1.5 DAYS = PHP 2,175 1H1.5 DAYS
SUMMARY

DESCRIPTION QUANTITY UNIT PRICE TOTAL

LAYING 1 LOT PHP 2,175 PHP 2,175

TOTAL PHP 2,175


"The construction
of a building
requires a solid
construction.“

DATAS IN SOFTWARE
ASSEMBLY
INCORPORATE IN ESTIMATE
•CONSTRUCTION
ESTIMATE
Construction estimating is the process
of assessing all the costs of a
construction project. Also in lieu with the
labor generation cost you can easily
incorporate the datas from duration
estimates and labor into your estimate
to make your estimate more competitive
and accurate. You can also use
Microsoft excel and other softwares.
INCORPORATE IN SCHEDULING

•GANTT CHART
A Gantt chart, commonly used in project
management, is one of the most popular and
useful ways of showing activities (tasks or events)
displayed against time.

This allows you to see at a glance:

•What the various activities are


•When each activity begins and ends
•How long each activity is scheduled to last
•Where activities overlap with other activities, and
by how much
•The start and end date of the whole project

•In connection with gantt chart you need to


determine project duration due from labor
variations too.
INCORPORATE IN PROJECT CONTROL
•S-CURVE

An “S-Curve” is often used when


forecasting the construction component of
a development feasibility. An S-Curve is a
chart showing construction cash flows
over a “standard” project’s life. The graph
plots the percentage of value of work
completed against the percentage of time
completed in small increments.

When using an S-Curve, only three


variables are needed to create a
construction expenditure forecast, these
are construction price, start date and
duration.
SCHEDULE
MANAGEMENT
USING PERT/CPM
METHOD
C O N S T R U C T I O N T R A I N I N G C O U R S E

P R E S E N T E D B Y :
E N G R . J O N A T H A N D . C O R T E Z
Page
01
COURSE OUTLINE
➢INTRODUCTION TO COST
ESTIMATES
➢DUPA ESTIMATES INTRODUCTION
➢TABLE OF ITEMS OF WORKS
➢LABOR RATES COMPUTATION
➢EQUIPMENT RENTAL
COMPUTATIONS
➢SAMPLE DUPA DEMONSTRATION
➢DATAS ASSEMBLY
➢KEYPOINTS
"The construction
of a building
requires a solid
construction.“

INTRODUCTION TO
COST ESTIMATES Page
03
QUANTITY
SURVEYING
QUANTITY SURVEYING

Quantity survey is a schedule of quantities of all the


items of work in a building. At the conceptual stage
such estimation is done on the basis of conceptual
drawings or in case of any non-availability of such
drawings, it is done on thumb-rule basis utilizing
expertise and experience of specialist. At the
execution stage the quantities are calculated based
on the construction drawings.

112
QUANTITY SURVEYING

In general, we can describe quantity survey as follows:


1. Description and preparation of the bill of quantities
and its items required for the tender.
2. Preparation of the site material, material types, and
material distribution Accuracy, thoroughness, and ability
to reconcile quantity and cost at every point of time are
the important qualities of a Good Quantity Surveyor.

113
DATA REQUIRED

Drawings
Complete and fully dimensioned drawings (i.e. plans, elevations, sections and other
details) of the building or work in question are required.

Specifications
Detailed specifications, giving the nature, quality and class of work, materials to be
used, quality of the material, their proportions, and method of preparation are
required.

Rates
The rates of various of work, materials to be used in the construction, wages of
different categories of labor (skilled or unskilled) and cost of transportation charges
should be available for preparing an estimate of work cost.

114
ACTUAL FINISHED WORK

Quantities can be calculated from the actual work done


in the project site. The quantities mainly can be
calculated as:
o Quantity = Length × Width × (Height or Thickness),
o Quantity = Area of cross-section × Length,
o Quantity = Length × Width,
o Quantity = Length.
o Quantity = Number of Units.
o Quantity = Weight.

115
IMPORTANCE QUANTITY SURVEYING

1. Quantity survey is essential to estimate before the


construction starts the probable cost of construction for the
complete work. The construction cost includes cost of
materials, cost of transportation, cost of labor, cost of
scaffolding, cost of tools and plants, establishment and
supervision charges, cost of water, taxes, and reasonable
profit of the contractor, etc. The estimate is required in
inviting tenders for the works and to arrange contract for a
complete project.

116
IMPORTANCE QUANTITY SURVEYING

2. Quantity survey is required to


estimate the quantities of the
various materials required and the
labor involved for satisfactory
completion of a construction
project.

117
IMPORTANCE QUANTITY SURVEYING

3. It is also useful to check the works


done by contractors during and after the
execution. Also, the payment to the
contractor is done according to the
actual measurements of the completed
part of each item of work.

118
IMPORTANCE QUANTITY SURVEYING

4. A complete quantity survey or estimate is


useful to provide useful advice to clients on:
(i) Valuation of properties (land and building)
for sale, purchase and mortgage etc. (ii)
Fixation of standard rent. (iii) For insurance
and claim for damages in a building. (iv) For
the process of resolving disputes by referring
to a third party.

119
TYPES OF
ESTIMATES
TYPES OF ESTIMATES

Preliminary or Approximate Estimate


This is to find out an approximate cost in a short time. It is used to give an
idea of the cost of a proposed project. This estimate helps the client or
sanctioning authority to make decision of the administrative approval. The
approximate cost is prepared from the comparison with similar works. The
approximate cost can be found by using methods that depends on the area
or cubic content of a building and then multiplying this by an estimated
rate for the unit of the area or cubic content. Approximate quantities of
materials and labor required per m2 of the area for a proposed building
also can be found.

121
TYPES OF ESTIMATES

Detailed Estimate
After getting the administrative approval, this
estimate is prepared in detail prior to inviting
of tenders. The whole project is divided into
sub-works, and the quantities of each subwork
are calculated separately. The dimensions of
the required work are taken from the drawings
of the project.

122
TYPES OF ESTIMATES

Quantity Estimates
This is a complete estimate of
quantities for all items during
project implementation.

123
TYPES OF ESTIMATES

Revised Estimate
Prepared if the estimate exceeded by
5% due to the rates being found
insufficient or due to some other
reason.

124
TYPES OF ESTIMATES

Maintenance Estimate
Estimating required quantities
and cost of work to maintain a
structure (road, building, etc.)

125
"The construction
of a building
requires a solid
construction.“

DUPA ANALYSIS
INTRODUCTION
Page
03
DUPA
• APPROVED BUDGET OF CONTRACT
• - is the total estimated agency estimate (direct cost,
indirect cost and tax) for civil works contract of
infrastructure projects, wherein it is the ceiling of award of
contract for government locally-funded projects and
reference for comparison of bid costs of contractors for
both locally-funded and foreign-assisted projects.

• Detailed Unit Price Analysis (DUPA)


• - is the determination of reasonable unit cost of each item
of work which reflects the breakdown showing the
quantities of work items, unit prices of materials,
equipment rental rates, labor rates and DPWH-prescribed
indirect costs including taxes.
STEP 1
GENERAL
1 . Determine the scope of works based on approved plans and
specification including other requirements
Calculate the quantity and cost of material component of every item
of work based on plans and specifications and prevailing prices of
construction materials and/or losses not to exceed 5% of the
material's requirement.
Determine the appropriate quantity based on best norms and
practices in the construction industry and cost for manpower and
equipment requirement to be used based on Standard Labor Rates
per Region and latest ACEL rates.
Determine the unit cost per item of work.

IDENTIFY THE WORK ITEMS


STEP 2
• 2. Gather the Necessary Data
• Labor Costs: Include the number of laborers
required for the task and their corresponding
wage rates (e.g., skilled and unskilled workers).
• Material Costs: Gather the current cost of
materials, based on prevailing market prices.
• Equipment Costs: Include equipment rental
rates or usage rates, fuel, and operator costs.
• Overhead, Contingencies, and Profit (OCP):
Apply the standard overhead rates as prescribed
by DPWH (typically around 15-20% of the direct
costs).

GATHER DATAS
STEP 3
Use the DUPA Form
The DUPA form, available through DPWH,
organizes the costs into the following
categories:
•Materials: The cost of materials per
unit.
•Labor: The labor cost associated with
each unit of work.
•Equipment: The equipment rental cost
or the cost of using owned equipment.
•OCP: Overhead, Contingency, and Profit
rates.
DUPA FORM GENERATION
STEP 4
•Calculate the Unit Price
•To calculate the unit price for a
work item:
•Direct Cost = (Material Cost +
Labor Cost + Equipment Cost)
•Indirect Cost = Overhead +
Contingency + Profit
•Total Cost = Direct Cost +
Indirect Cost
CALCULATE UNIT PRICES
LABOR
Determination of Category of Work Supervisor
• The appropriate number and category of supervisor
including unskilled labor to be deployed depends on the
specific type and complexity of an item of work to be done.
In this discussion, the labor force (crew or gang) were
established based on actual study and best practices
observed during the construction of BOC implemented
projects.
• Example: Concreting Works
• Foreman - 1 Skilled Worker (Mason, carpenter) 2 Unskilled
Labor - 6
EQUIPMEN T
Calculation of Production output per hour Type
and number of equipment and tools including
lightings utilized during pouring:
• Transit Mixer - 4 Pump-Crete - 1 Concrete Vibrator -
2 Lighting System (if applicable) - 1
• Production output per hour = volume of concrete /
number of hours to complete work = 25.5 cu.m / 6.85
hr = 3.72 cu.m/hr
OCM , TAXES
Determination of percentages of Overhead,
Contingency and Miscellaneous (OCM)
expenses, Profit and Value-Added Tax (VAT)
• The percentages of OCM, Profit and VAT to be
applied to the estimated direct cost (i.e. cost of
material, labor and equipment rental) should be
based on Department Order (DO) No. 197,
Series of 2016 (Guidelines in the Preparation of
Approved Budget for the Contract) or latest
issuance.
STEP 5
•Consult the DPWH DUPA
Manual
•DPWH typically provides a
standard DUPA rate for
common work items. These
rates can be adjusted
depending on the specifics of
your project (location,
material availability, etc.).
CONSULT MANUALS
Example of DUPA Calculation:
•Work Item: Concreting (1 cubic meter)
•Material Cost: PHP 3,000 (cement, sand,
gravel)
•Labor Cost: PHP 1,500 (laborers' wages)
•Equipment Cost: PHP 500 (mixer rental,
fuel)
•Direct Cost = PHP 3,000 + PHP 1,500 + PHP
500 = PHP 5,000
•OCP (15%) = PHP 5,000 × 15% = PHP 750
•Total Cost = PHP 5,000 + PHP 750 = PHP
5,750 per cubic meter of concrete.
STEP 6
• Apply Rates to the Project's Quantity
• Multiply the total unit cost by the number of
units (e.g., cubic meters of concrete,
meters of pavement) to estimate the total
cost for each work item in your project.

PROJECT TAKE OFF


COST
ESTIMATION
PROCESS
DPWH
DEFINITION OF
TERMS
Program of Works (POW) - is the total
estimated cost of the project which covers the
Civil Works Cost, Engineering Supervision and
Administrative Overhead, Road Right-of-Way
Acquisition Cost, Construction Contingency,
etc. The POW shall include information about
the project location and limits, quantity and
unit cost for each item of work, construction
duration, funding source, equipment
requirements, etc.
Approved Budget for the Contract (ABC)
- is the total estimated agency estimate
(direct cost, indirect cost and tax) for
civil works contract of infrastructure
projects, wherein it is the ceiling of
award of contract for government
locally-funded projects and reference
for comparison of bid costs of
contractors for both locally-funded and
foreign-assisted projects.
Detailed Unit Price Analysis
(DUPA) - is the determination
of reasonable unit cost of each
item of work which reflects
the breakdown showing the
quantities of work items, unit
prices of materials, equipment
rental rates, labor rates and
DPWH-prescribed indirect
costs including taxes.
Standard Labor Rates .J - are
matrices prepared and issued by
Department of Public Works and
Highways (DPWH) periodically
showing the required
compensation for manpower
workforce of different
categories, which comprises the
minimum wage as approved by
the NWPC, DOLE plus the
monetary benefits.
ACEL Guidebook 2014 - is a
guidebook where rental
rates of commonly used
equipment for infrastructure
projects are based. It is
published by Association of
Carriers and Equipment
Lessors, (ACEL) Inc..
Construction Materials Price Data
(CMPD) - is a compilation of unit
prices of construction materials
updated quarterly per District
Engineering Office to be used as
reference in the pricing of
materials component of the pay
items of work in the preparation
of DUPA, ABC & POW, including
new items .of work .involved in a
va.
DPWH Standard Specifications for Public Works and
Highways - commonly called as "Blue Book", is a
compilation of detailed descriptions of work items in
constructing public works and highways projects such
as roads, bridges, buildings, etc. In other words, a
compilation of specifications of standard works
acceptable to the DPWH. - is composed of
specifications containing detailed description of the
workmanship, material requirements, technical
dimensions, materials proportion, datum lines and
grades and other established references to follow or
adhere to, e.g. AASHTO,ASTM,etc.; basis of
measurement, payment and unit of
measure/measurement; and basis of acceptance and
special details that would give the user a clear view
of the work to be done.
Low Rise Building "One-storey up to
5-storeys in height, i.e. from 3.00 m
up to a maximum of 15.00 meters
above established grade; while not
generally requiring an elevator if the
building/structure is purely
residential use; fire escapes and
other safety systems are mandatory
for all low-rise buildings/structures."
SCOPE OF WORKS
• The Scope of Work (SOW)
is the area in an
agreement where the work
to be performed is
described. The SOW should
contain any milestones,
reports, deliverables, and
end products that are
expected to be provided
by the performing party.
I. General Requirements
a. Mobilization, Materials Handling
a. Site Clearing
b. Temporary Facilities
c. Demolition
d. Excavation
e. Demobilization
f. Hauling
II. Concrete Works
a. Foundation (Excavation, Pouring of concrete, steel
fabrications) b. Footing (Excavation, pouring of concrete, steel fabrications)
c. Wall Footing (Excavation, pouring of concrete, steel fabrications)
d. Tie Beams (Excavation, formworks, pouring of concrete, steel fabrications)
e. Columns (Formworks, scaffolding, pouring of concrete, steel fabrications)
f. Beams (Formworks, scaffolding, pouring of concrete, steel fabrications)
g. Roof Beams (Formworks, scaffolding, pouring of concrete, steel fabrications)
h. Concrete Slab Works (Formworks, scaffolding, poring of concrete, steel
fabrications)
i. Canopies
j. Counter Top
III. Masonry Works
a. CHB Laying and CHB reinforcements
b. Brick Works (Limited to conservative finish)
c. Stone Works (Limited to conservative finish)
IV. Roofing and Tinsmitry
a. Truss work
b. Roofing Installations (.40mm thick Rib Type Roofing)
c. Gutter Installations (Colored S-gutter)
V. Finishing Works
a. Plastering
b. Ceiling Works ( Limited to conservative finish)
c. Tile Works
-Ground Floor common areas (Granite Tiles .60x.60m)
-Toilet and Bath (.20x.30 and .20x.20m ceramic tiles)
-Counter Top (Granite Tiles .60x.60m)
-Laminated Flooring for al l rooms
-Second floor common areas (Granite Tiles .60x.60m)
d. Painting Works (Interior and exterior painting)
e. Carpentry works , Cabinets(Limited to conservative finish)
f. Doors (Panel and flush doors, aluminum framed sliding doors, hardware)
g. Windows (Aluminum framed sliding, awning and fixed windows)
XV. Electrical Works
a. Electrical rough-ins, power and
lighting lines
b. Main entrance, Panel board
XVI. Sanitary Works
a. Septic Vault
b. Sanitary lines
c. Installation of fixtures
d. Storm drain
XVII. Plumbing Works
a. Cold Water line installations
IX. HVAC Works
a. Aircon installations
"The construction
of a building
requires a solid
construction.“

TABLE OF ITEMS OF
WORK &
DESCRIPTION
PART A
EARTH
WORKS
PART B
PLAIN AND
REINFORCED
CONCRETE WORKS
PART C
FINISHING
PART D
ELECTRICAL
PART E
MECHANICAL
"The construction
of a building
requires a solid
construction.“

COMPUTATION OF
LABOR RATES
Page
03
LABOR/MEN
MEN.

These area different members of the


organization starting from the very top of the
last workman in the enterprise.
TYPES OF LABOR

•UNSKILLED
•SEMI-SKILLED
•SKILLED
•PROFESSIONAL LABOR
UNSKILLED LABORS
SEMI-SKILLED LABORS
SKILLED LABORS
PROFESSIONAL LABORS
LABOR PRODUCTIVITY
Labor productivity measures the hourly output of a
country's economy. Specifically, it charts the amount
of real gross domestic product (GDP) produced by
an hour of labor. Growth in labor productivity
depends on three main factors: saving and
investment in physical capital, new technology, and
human capital.
Page
07
LABOR PRODUCTIVITY

Understanding Labor Productivity


Labor productivity, also known as workforce
productivity, is defined as real economic output per
labor hour. Growth in labor productivity is measured
by the change in economic output per labor hour
over a defined period. Labor productivity should not
be confused with employee productivity, which is a
measure of an individual worker's output.

Page
07
LABOR PRODUCTIVITY
Policies to Improve Labor Productivity
There are a number of ways that governments and
companies can improve labor productivity.

•Investment in physical capital: Increasing the


investment in capital goods
including infrastructure from governments and the
private sector can help productivity while lowering
the cost of doing business.
Page
07
LABOR PRODUCTIVITY

•Quality of education and training: Offering


opportunities for workers to upgrade their skills,
and offering education and training at an affordable
cost, help raise a corporation’s and an economy's
productivity.

Page
07
LABOR PRODUCTIVITY

•Technological progress: Developing new


technologies, including hard technology like
computerization or robotics and soft technologies
like new modes of organizing a business or pro-free
market reforms in government policy can enhance
worker productivity.

Page
07
"The construction
of a building
requires a solid
construction.“

COMPUTATION OF
EQUIPMENT
RENTALS Page
03
"The construction
of a building
requires a solid
construction.“

EXAMPLE DUPA
ESTIMATE DEMO
Page
03
KEYPOINTS

Key Points:
•Ensure that the unit costs are based
on current market prices.

•Check the DPWH's guidelines for


standardized rates to maintain
accuracy in your estimates.

•Adjust costs for project-specific


factors (location, complexity, etc.).
THANK YOU

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