Construction Projects and Key Players

construction project- is a planned effort to build, renovate, or develop infrastructure, buildings, or other structures.

TYPES OF CONSTRUCTION PROJECTS - Residential: Commercial: Industrial:

KEY PLAYERS IN CONSTRUCTION PROJECTS: Client/Owner, Architects & Designers, Engineers, Contractors, Subcontractors,
Project Manager, Government/Authorities
Project delivery refers to the process and structure used to organize, design, construct, and manage a project from start to
finish. It encompasses the methods, procedures, roles, and responsibilities of all parties involved (owners, contractors,
designers, etc.) to ensure the project is completed on time, within budget, and to the required quality standards.

The Project Delivery Life Cycle:

1. Initiation & Feasibility

2. Planning & Design

3. Procurement

4. Construction Execution

5. Commissioning & Handover

6. Operation & Maintenance

CONSTRUCTION CONTRACTS

construction contracts are legally binding agreements that explain the work that a general contractor will perform and the
payment that a project owner will make. These contracts play a key role in construction management.

Construction contracts involve two parties; owners and contractors.

TYPES OF CONSTRUCTION CONTRACTS:

1. Lump-Sum Contract
2. Cost-Plus Contract
3. Time and Materials Contract
4. Unit Price Contract
5. Design-Build Contract
6. Guaranteed Maximum Price (GMP) Contract
7. Incentive Construction Contracts
8. Integrated Project Delivery Contract

ESTIMATING IN SMALL RESIDENTIAL AND COMMERCIAL PROJECTS

Estimating is the process of predicting the cost, time, and resources needed for a construction or engineering project.

TYPES OF ESTIMATES:

• Preliminary Estimate – Rough estimate for feasibility analysis.

• Detailed Estimate – Breakdown of all costs for budgeting.

• Quantity Take-off – Calculation of materials and labor requirements.

STEPS IN PREPARING A QUANTITY & COST ESTIMATE:

• Review Project Plans & Specifications – Understand the project scope.

• Quantity Take-off (QTO) – Measure required materials and labor.

• Apply Unit Costs – Use standard prices for materials and labor.

• Calculate Total Cost – Sum up direct & indirect costs.

• Include Contingencies & Profit Margin – Factor in unexpected costs.

KEY COMPONENTS OF AN ESTIMATE:

Materials – Cement, steel, bricks, etc.

Labor – Wages for workers and contractors.

Equipment & Tools – Machinery rental or purchase.

Overheads & Profits – Administrative and indirect costs.

CONCLUSION

 Estimating is crucial for project success.

 Accuracy reduces risks and cost overruns.
 Using technology and best practices improves efficiency.
 Proper estimation ensures profitability and project feasibility.

CONSTRUCTION SCHEDULING

steps to effective time management:

• Examine the Contract

• List Major Contractual Obligations
• Divide Project into Major Work Areas
• Building Technology Implies Sequence
• Find Productivity, Duration, Cost
• Calculate Initial Schedule
• Schedule Adjustments
• Resource Evaluation
• Time / Cost Trade-off
• Total Project Cash Flow
• Include All Important Procurement
Two Versions of Network Diagrams

1. Activity-on-Arrow (AOA) networks

– also called Arrow Diagramming Method (ADM)
– simpler for projects with many dependencies
– emphasizes events; milestones can be easily flagged
– sometimes requires dummy activities
2. Activity-on-Node (AON) networks
– also called Precedence Diagramming Method (PDM)
– easier to draw for simple projects
– emphasizes activities
– no dummy activities

Scheduling is a mechanical process for setting the various plannned activities in order by fixing the starting and finishing date of
each activity of the work

TYPES OF SCHEDULE:

• Equipment schedule
• Expenditure schedule
• Construction schedule
• Material schedule
• Labor schedule

METHODS OF SCHEDULING:

 Gantt Charts or Bar charts

 Milestone Chart

Network Analysis is a vital project management technique that integrates two widely used methodologies:

 Program Evaluation and Review Technique (PERT)

 Critical Path Method (CPM).
 PAYMENT

Construction Payment or Billing: serves as the financial backbone of the construction industry, acting as the starting point
around which the flow of funds, project timelines, and client-builder relationships revolve. The process involves systematically
invoicing clients for the completed work, ensuring accurate and promp payments.

Top 7 Construction Payment or Billing Method:

1. LUMP SUM BILLING

2. Cost Plus Billing
3. Time and Materials Billing
4. Unit Price Billing
5. AIA Style Progress Billing
6. Retainage Billing
7. Guaranteed Maximum Price (GMP) Billing

CONSTRUCTION CLAIMS AND DISPUTES

construction claim" refers to a formal request made by a party involved in a construction project to seek compensation for
additional costs or time extensions due to unforeseen circumstances, design changes, or other issues not explicitly covered in
the original contract.

construction dispute" is a disagreement between parties on a construction project, often arising from claims that cannot be
resolved through negotiation and may escalate to legal action.

COMMON CAUSES:

 Delays: Delays caused by weather, unforeseen issues, or actions of other parties on the project.
 Defective materials: Issues with the quality of materials used on the project.
 Poor communication: Lack of clear communication between project stakeholders leading to misunderstandings.

TYPES OF CONSTRUCTION CLAIMS

• Variation Claims: Claims for additional costs due to changes in the scope of work.
• Delay Claims: Claims for compensation related to project delays.
• Differing Site Conditions Claims: Claims arising from unexpected site conditions that differ from what was anticipated.
• Acceleration Claims: Claims for additional costs associated with speeding up the project to meet a deadline

DISPUTE RESOLUTION METHODS:

NEGOTIATION Attempting to reach a mutually agreeable solution through discussion

MEDIATION Using a neutral third party to facilitate communication and reach a compromise
ARBITRATION Submitting the dispute to a neutral arbitrator who makes a binding decision
LITIGATION Filing a lawsuit in court to resolve the dispute
CONSTRUCTION SAFETY

It involves the measures, protocols, and practices designed to protect the well-being of workers and the public in construction
environments.

PHASE: KEY STAGES AND PROCESSES

The construction phase is the stage where physical building activities begin. It is a crucial step in project development, ensuring
quality and safety. This presentation will cover key stages, safety measures, and final handover.

CONSTRUCTION PHASE -IT REFERS TO A SPECIFIC PERIOD IN A PROJECT LIFECYCLE WHERE THE ACTUAL BUILDING OR CREATION
OF THE PROJECT’S PHYSICAL COMPONENTS TAKES PLACE. IT’S THE STAGE WHERE PLANS AND DESIGNS TRANSITION FROM
PAPER INTO REALITY.

CHANGES IN THE WORK

Common Causes of Changes in Work:

• Design modifications
• Unforeseen site conditions
• Regulatory and code changes
• Client-driven changes
• Material availability issues
• Errors or omissions in contract documents

Impact of Work Changes:

• Cost overruns
• Project delays
• Quality concerns
• Contract disputes
• Productivity loss
• Safety hazards
 PROJECT CLOSEOUT

CLOSEOUT- The final phase of a construction project ensuring all contract requirements are met.

KEY COMPONENTS OF CLOSEOUT:

ADMINISTRATIVE CLOSEOUT

• Contracts & permits closure

• Final change orders & payments

PHYSICAL CLOSEOUT

• Punch list completion

• Site clean-up & final inspections

DOCUMENTATION & HANDOVER

• As-built drawings, warranties, O&M manuals

• Training for facility management

CLOSEOUT PROCESS OVERVIEW

1. Pre-Closeout Planning

2. Final Inspections & Punch List Completion

3. Documentation & Compliance Checks

4. Handover & Client Acceptance

5. Lessons Learned & Post-Closeout Review