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Construction Contracts and Project Management

The document outlines key aspects of construction methods and project management, including the definition of construction contracts, phases of construction projects, and various organizational structures involved. It details the types of construction projects such as residential, commercial, industrial, and infrastructure, along with the roles of professionals like architects, engineers, and construction managers. Additionally, it emphasizes the importance of specifications and project management steps to ensure successful project completion within time and budget constraints.

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0% found this document useful (0 votes)
8 views43 pages

Construction Contracts and Project Management

The document outlines key aspects of construction methods and project management, including the definition of construction contracts, phases of construction projects, and various organizational structures involved. It details the types of construction projects such as residential, commercial, industrial, and infrastructure, along with the roles of professionals like architects, engineers, and construction managers. Additionally, it emphasizes the importance of specifications and project management steps to ensure successful project completion within time and budget constraints.

Uploaded by

2201832
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

Construction Methods and Project Management

INTRODUCTION
ENGR. JACKIE PRINCESS S. GUIQUING

Civil Engineering Department


School of Architecture, Computing, and Engineering
1. Understand and explain key parts of
construction contracts
2. Outline all phases of a construction
project
3. understand various organizational
structures used in construction projects,
including their roles, and responsibilities
CONTRACTS AND
SPECIFICATIONS
CONSTRUCTION CONTRACT
single
DEFINITION contractor
single
property
a mutual or legally owner multiple
contractor
binding agreement
between two
c parties
based on policies and single
contractor
conditions recorded multiple
property
in document form. owner
multiple
contractor
CONTRACT DOCUMENTS
the documents attached to the Agreement identified
therein as Contract Documents, including all additions,
deletions and modifications incorporated to those
Contract Documents.
These generally include the following:

Special Other
General
Provisions/ Specifications Drawings Bid
Conditions
Conditions Documents
SPECIFICATIONS
describe the products, materials, and
work required by a construction contract.
They do not include cost, quantity, or
drawn information, and so need to be
read alongside other information such as
quantities, schedules, and drawings.
SPECIFICATIONS
Specifications vary considerably depending
on the stage to which the design has been
developed, ranging from performance
specifications (open specifications) that
require further design work to be carried out,
to prescriptive specifications (closed
specifications) where the design is already
complete.
Performance Prescriptive
Specifications Specifications
gives suppliers more gives the client more
scope to innovate and certainty about the
adopt cost-effective end product
methods of work,
potentially offering
better value for money

written on projects that written for more


are straight-forward and complex buildings
are well-known building
types
Key to deciding whether to specify a building
component prescriptively or not, is considering
who is most likely to achieve best value, the
client, the designers or the contractor:

Large clients may be able to procure certain


products at competitive rates themselves
(for example the government).
Key to deciding whether to specify a building
component prescriptively or not, is considering
who is most likely to achieve best value, the
client, the designers or the contractor:

Some designers may have particular experience of


using a specific product (although some clients may not
allow designers to specify particular products as they
believe it restricts competition and innovation and may
relieve the contractor of their liability for 'fitness for
purpose').
Key to deciding whether to specify a building
component prescriptively or not, is considering
who is most likely to achieve best value, the
client, the designers or the contractor:

The contractor may be best placed to specify


products that affect buildability.
SPECIFICATIONS
should be developed alongside the design,
increasing in level of detail as the design
progresses. They should not be left until
the preparation of production information.
By tender, they should describe every
aspect of the building in such a way that
there is no uncertainty about what the
contractor is pricing.
Aspects of the works are generally specified by:

by standard, a description of attributes,


naming (perhaps allowing equivalent
alternatives) or by nominating suppliers

by compliance with manufacturers


requirements, reference to a code of
practice or standards, or by approval
of samples or by testing
It should be possible to verify standards of products
and workmanship by testing, inspection, mock-ups
and samples, and documentation such as
manufacturer's certificates.

Specifications should be structured according to


work packages mirroring the separation of the
works into sub-contracts. This makes it easier for
the contractor to price and so may result in a more
accurate tender. A standard classification system
should be followed, such as Uniclass.
CONSTRUCTION
PROJECT
PROJECTS
• a series of related a tasks which when they are carried in the
correct order will lead to the completion of the project.
• temporary, generally resulting in the creation of a tangible
product or outcome.

CONSTRUCTION PROJECTS

• sometimes just referred to as a ‘project’, is the organized process of


constructing, renovating, refurbishing, etc. a building, structure or
infrastructure
• project process typically starts with an overarching requirement
which is developed through the creation of a brief, feasibility
studies, option studies, design, financing and construction.
PROJECTS PUBLIC PROJECT

one that is financed by the


PRIVATE PROJECT
government and is typically
owned, and may be
one that is financed, operated by the
controlled or commissioned government. This can
by a private party, i.e. one include major infrastructure
that is not a government. works such as roads,
Private parties can include bridges, dams, railways,
individuals, corporations, tunnels, and so on, or public
charities, privately- facilities such as hospitals,
funded institutions, schools, schools, prisons, libraries,
hospitals, and so on. leisure centres, and so on.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
RESIDENTIAL HOUSING CONSTRUCTION

• includes single - family


houses, multi - family
dwellings, and high -
rise apartments.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
RESIDENTIAL HOUSING CONSTRUCTION
• During the development and construction of such
projects, the developers or sponsors who are
familiar with the construction industry usually serve
as surrogate owners and take charge, making
necessary contractual agreements for design and
construction, and arranging the financing and sale
of the completed structures.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
RESIDENTIAL HOUSING CONSTRUCTION
• Architects and engineers, and the construction
executed by builders who hire subcontractors for the
structural, mechanical, electrical and other specialty
work usually perform residential housing designs.
• An exception to this pattern is for single-family
houses, which may be designed by the builders as
well.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INSTITUTIONAL AND COMMERCIAL
BUILDING CONSTRUCTION
• encompasses a great variety of
project types and sizes, such as
schools and universities, medical
clinics and hospitals, recreational
facilities and sports stadiums,
retail chain stores and large
shopping centers, warehouses and
light manufacturing plants, and
skyscrapers for offices and hotels.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INSTITUTIONAL AND COMMERCIAL
BUILDING CONSTRUCTION
• The owners of such buildings may or may not be
familiar with construction industry practices, but
they usually are able to select competent
professional consultants and arrange the financing
of the constructed facilities themselves
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INSTITUTIONAL AND COMMERCIAL
BUILDING CONSTRUCTION
• Specialty architects and engineers are often
engaged for designing a specific type of building,
while the builders or general contractors
undertaking such projects may also be specialized
in only that type of building.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
SPECIALIZED INDUSTRIAL CONSTRCUTION
• usually involves very large
scale projects with a high
degree of technological
complexity, such as oil
refineries, steel mills,
chemical processing plants
and coalfired or nuclear
power plants.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
SPECIALIZED INDUSTRIAL CONSTRCUTION

• The owners usually are deeply involved in the


development of a project, and prefer to work
with designers-builders such that the total
time for the completion of the project can be
shortened.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
SPECIALIZED INDUSTRIAL CONSTRCUTION

• They also want to pick a team of designers


and builders with whom the owner has
developed good working relations over the
years.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INFRASTRUCTURE AND HEAVY CONSTRUCTION
• Includes projects such as
highways, mass transit systems,
tunnels, bridges, pipelines,
drainage systems and sewage
treatment plants.
• Most of these projects are
publicly owned and therefore
financed through either bonds
or taxes.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INFRASTRUCTURE AND HEAVY CONSTRUCTION

• This category of construction is characterized


by a high degree of mechanization, which has
gradually replaced some labor-intensive
operations.
MAJOR TYPES OF
CONSTRUCTION PROJECTS
INFRASTRUCTURE AND HEAVY CONSTRUCTION

• This category of construction is characterized


by a high degree of mechanization, which has
gradually replaced some labor-intensive
operations.
PROJECT MANAGEMENT
concerned with the overall planning and co-ordination
of a project from conception to completion aimed at
meeting the stated requirements and ensuring
completion on time, within cost and to required quality
standards. STEPS IN PROJECT MANAGEMENT

1 Project Definition and Scope 4 Contracting

2 Technical Design 5 Implementation

3 Financing 6 Performance Monitoring


ORGANIZATION
AND MANAGEMENT
SELECTION OF
PROFESSIONAL SERVICES
When an owner decides to seek professional services for the
design and construction of a facility, he is confronted with a
broad variety of choices. The type of services selected
depends to a large degree on the type of construction and
the experience of the owner in dealing with various
professionals in the previous projects undertaken by the firm.
Generally, the owners may engage several common types of
professional services either separately or in some
combination.
FINANCIAL PLANNING
CONSULTANTS
At the early stage of strategic planning for a capital project,
an owner often seeks the services of financial planning
consultants such as certified public accounting (CPA) firms to
evaluate the economic and financial feasibility of the
constructed facility, particularly with respect to various
provisions of federal, state and local tax laws which may
affect the investment decision. Investment banks may also
be consulted on various options for financing the facility in
order to analyze their long-term effects on the financial
health of the owner organization.
ARCHITECTURAL AND
ENGINNERING FIRMS
Traditionally, the owner engages an architectural and
engineering (A/E) firm or consortium as technical consultant
in developing a preliminary design. After the engineering
design and financing arrangements for the project are
completed, the owner will enter into a construction contract
with a general contractor either through competitive bidding
or negotiation. The general contractor will act as a contractor
and/or a coordinator of a large number of subcontractors
who perform various specialties for the completion of the
project.
ARCHITECTURAL AND
ENGINNERING FIRMS
The A/E firm completes the design and may also
provide on site quality inspection during construction.
Thus, the A/E firm acts as the prime professional on
behalf of the owner and supervises the construction
to insure satisfactory results. This practice is most
common in building construction.
DESIGN OR
CONSTRUCT FIRMS
A common trend in industrial construction,
particularly for large projects, is to engage the
services of a design/construct firm. By integrating
design and construction management in a single
organization, many of the conflicts between
designers and constructors might be avoided. In
particular, designs will be closely scrutinized for their
constructability.
DESIGN OR
CONSTRUCT FIRMS
However, an owner engaging a design/construct firm
must insure that the quality of the constructed facility
is not sacrificed by the desire to reduce the time or
the cost for completing the project. In addition, it is
difficult to make use of competitive bidding in this
type of design/construct process. As a result, owners
must be relatively sophisticated in negotiating
realistic and cost-effective construction contracts.
PROFESSIONAL
CONSTRUCTION MANAGERS
In recent years, a new breed of construction
managers (CM) offers professional services from the
inception to the completion of a construction project.
These construction managers mostly come from the
ranks of A/E firms or general contractors who may or
may not retain dual roles in the service of the owners.
In any case, the owner can rely on the service of a
single prime professional to manage the entire
process of a construction project.
PROFESSIONAL
CONSTRUCTION MANAGERS
However, like the A/E firms of several decades ago,
the construction managers are appreciated by some
owners but not by others. Before long, some owners
find that the construction managers too may try to
protect their own interest instead of that of the
owners when the stakes are high.
OPERATIONS AND
MAINTENANCE MANAGERS
Although many owners keep a permanent staff for the
operation and maintenance of constructed facilities,
others may prefer to contract such tasks to
professional managers. Understandably, it is common
to find in-house staff for operation and maintenance in
specialized industrial plants and infrastructure
facilities, and the use of outside managers under
contracts for the operation and maintenance of rental
properties such as apartments and office buildings.
OPERATIONS AND
MAINTENANCE MANAGERS
However, there are exceptions to these common
practices. For example, maintenance of public
roadways can be contracted to private firms. In any
case, managers can provide a spectrum of operation
and maintenance services for a specified time in
accordance to the terms of contractual agreements.
Thus, the owners can be spared the provision of in-
house expertise to operate and maintain the facilities.
FACILITIES AND
MANAGEMENT
As a logical extension for obtaining the best services
throughout the project life cycle of a constructed facility,
some owners and developers are receptive to adding
strategic planning at the beginning and facility maintenance
as a follow-up to reduce space-related costs in their real
estate holdings. Consequently, some architectural or
engineering firms and construction management firms with
computer-based expertise, together with interior design
firms, are offering such front-end and follow-up services in
addition to the more traditional services in design and
construction.
FACILITIES AND
MANAGEMENT
Facilities management is the discipline of planning,
designing, constructing and managing space -- in
every type of structure from office buildings to
process plants. It involves developing corporate
facilities policy, long-range forecasts, real estate,
space inventories, projects (through design,
construction and renovation), building operation and
maintenance plans and furniture and equipment
inventories.

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