Construction Management Week 03 - 2024 - 2025 PDF

CONSTRUCTION MANAGEMENT WEEK 03- T1 AY 2024 - 2025 AR. DAN VINCENT R. DIAMANTE IV,uap,pmp  WHAT IS A PROJECT? A project is an individual or collaborative enterprise that is carefully planned to achieve a particular aim. (Oxford Dictionary.) A project is a temporary endeavour un...

CONSTRUCTION MANAGEMENT WEEK 03- T1 AY 2024 - 2025 AR. DAN VINCENT R. DIAMANTE IV,uap,pmp  WHAT IS A PROJECT? A project is an individual or collaborative enterprise that is carefully planned to achieve a particular aim. (Oxford Dictionary.) A project is a temporary endeavour undertaken to create a unique product, service, or result. (Project Management Institute) A project is a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed Business Case. (PRINCE2) PROJECT INITIATION PHASE The Initiation Phase is that time in the project lifecycle when the project idea is defined, evaluated and then authorized to proceed by the Project Sponsor or owner. The project justification, significant deliverables, risks, estimated cost and resource requirements and other information about the project are documented and reviewed in a formal project discovery process. This detailed information will later be contained in the project charter. A well-written project charter will help everyone involved in the project understand and come to agreement on exactly what is being proposed, the benefits that can be expected, the technical approach to be taken and how the project’s deliverables will fit into ongoing operations.  PROJECT CHARTER The Project Charter is the major deliverable created in the Initiation Phase. The Project Charter is critical because it will be the first formal definition of the project. The Project Charter formally authorizes the project to exist, establishes the Project Managers authority, and documents the high-level requirements, milestones, and success criteria. The Project Charter is not a project plan – the project plan will be created in the Planning Phase once the Project Charter has been approved.  PROJECT CHARTER COMPONENTS PROJECT PROJECT GOALS PROJECT PROJECT PROJECT SCOPE DEFINITION AND OBJECTIVES STAKEHOLDERS DELIVERABLES PROJECT PROJECT COST PROJECT TEAM PROJECT RISKS TIMELINE PROJECT FEASIBILITY ANALYSIS Project feasibility is the study of a project's various elements to determine if it has the potential for success. Before a project begins, a company can evaluate the project's feasibility to identify obstacles, form strategies to overcome them and ultimately attract investors. Managers consider their available resources and financial requirements when determining a project's feasibility. The feasibility of a project becomes clear when a business plans to launch a new product, expand its location or perform activities that impact the company and its departments.  WHAT DOES FEASIBILITY STUDY ANALYZES 1 2 3 4 5 TECHNICAL ECONOMIC LEGAL OPERATIONAL SCHEDULING FEASIBILITY FEASIBILITY FEASIBILITY Operational aspects of the This sets the timeline for This focuses on the project's This refers to cost and This addresses the legal feasibility study include the project and technical needs and provides detailed requirements of the references to how the expectations for determines how a company information about project project, such as permits or organization will adapt to the milestones or goals. It can meet those needs. For spending, expected licenses. The feasibility project and how the project addresses time constraints example, a project may serves the organization's and strategies to revenue, projected profits study defines legal require tools or software that goals and mission. For overcome delays. and the company's return requirements and confirms a company doesn't currently example, a feasibility study on investment. It outlines whether compliance with have, and the study can help might that determine a the financial benefits of the legal requirements will them determine whether the project will require additional project to determine its benefit the company project merits the personnel, so the company worth. overall. investment. may launch a hiring initiative.  PROJECT FINANCE Project finance is an approach to funding major projects through a group of investment partners, who are repaid based on the cash flow generated by the project. The investors in a project finance arrangement are known as sponsors, and often include financial institutions with a high tolerance for risk. Sponsors may also include organizations in the same industry, a contractor interested in the project, and government or other public entities. STRUCTURE OF PROJECT FINANCE Project financing directs funds to an entity called a special project vehicle, or SPV, that oversees the project until it is completed. This structure gives project financing two characteristics — off-balance sheet recording of liabilities and non-recourse financing — that differentiate it from other financing methods. An SPV differs from a joint venture, which doesn’t always involve establishing a new legal entity and, consequently, these two advantages.  STRUCTURE OF PROJECT FINANCE OFF-BALANCE SHEET NON-RECOURSE LIABILITIES FINANCING Debts and obligations associated with project Project finance is classified as a non-recourse finance arrangements are not recorded directly type of financial structure. This means that in the on the balance sheets of the businesses that event of default on the loans secured to fund the sponsor the project. Instead, they are held by the project, sponsors generally have recourse only to subsidiary SPV. The debts may be mentioned in assets held by the SPV, rather than the parent balance sheet notes or discussed by business company. The interest rates for non-recourse executives, but they do not impact standard financing are typically higher to reflect the balance sheet calculations, such as a business’s greater risk assumed by lenders. total assets or liabilities. PRE-CONSTRUCTION PHASE The pre-construction phase includes creating a strategic plan for the project, creating a design, securing permits or entitlements, and gathering the labor and resources required for construction. Pre-construction services can provide owners with a formal approach for developing cost, scope, and schedule to execute the construction on time and in control. The preconstruction phase is critical to a project’s success. It is during this phase that the project team gets organized, aligned in their vision and where the foundation of project communication and process is laid. Without a strong foundation, a construction project can quickly become disorderly, leading to gaps in communication, holes in the process and potential schedule delays.  PRE-CONSTRUCTION PHASE (DESIGN PHASE) 1 2 3 4 CONCEPTUAL SCHEMATIC DESIGN DEV’T CONTRACT During this stage the During this phase, the Good communication DOCS owner hires key project team between owner, Final preparation of consultants including the investigates alternate designer, and the documents designer and project design solutions, construction manager is necessary for the bid manager, selects the materials and systems. critical during this stage package such as the project site, and establish Completion of this because selections drawings, a conceptual estimate, stage represents about during this design stage specifications, general schedule, and program. 30% of the design affect conditions, and bill of completion for project appearance, quantities. the project. construction and cost. PROCUREMENT PHASE (BIDDING & AWARDS PHASE) - The project formally transits from design into construction. - This stage begins with a public advertisement for all interested bidders or an invitation for specific bidders. - In fast-track projects, this phase overlaps with the design phase. - If the project is phased, each work package will be advertised and bid out individually. - It is very important stage to select highly qualified contractors. It is not wise to select the under-bid contractors CONSTRUCTION PHASE - The actual physical construction of the project stage. - This stage takes the project from procurement through the final completion. - It is the time where the bulk of the owner’s funds will be spent. - It is the outcome of all previous stages (i.e., good preparation means smooth construction). - The consultant will be deployed for contract administration and construction supervision. - Changes during construction may hinder the progress of the project. CLOSEOUT PHASE - Transition from design and construction to the actual use of the constructed facility. - In this stage, the management team must provide documentation, shop drawings, as-built drawings, and operation manuals to the owner organization. - The as-built drawings are the original contract drawings adjusted to reflect all the changes that occurred. CLOSEOUT PHASE - Assessment of the project team’s performance is crucial in this stage for avoiding mistakes in the future. - Actual activity costs and durations should be recorded and compared with that was planned. This updated costs and durations will serve as the basis for the estimating and scheduling of future projects. PROJECT LIFE CYCLE The project life cycle may be viewed as a process through which a project is implemented from beginning to end. This process is often very complex; however, it can be decomposed into several stages as indicated by the general outline in the figure. The solutions at various stages are then integrated to obtain the final outcome. Although each stage requires different expertise, it usually includes both technical and managerial activities in the knowledge domain of the specialist. THANK YOU! Construction Management Week 04- 1ST TERM A.Y. 2024-2025 Ar. Dan Vincent R. Diamante IV, uap,pmp CONTRACT A contract is defined as: "an agreement made between two or more parties which is enforceable by law to provide something in return for something else from a second party". Contracts can be very simple or they may be very long and complicated legal documents. When a contract is properly set-up it is legally binding upon. The two parties are expected to perform the various obligations they have undertaken, as expressed in a mutually agreed set of contract documents. A contract therefore, is necessary to protect both client and contractor. ELEMENTS IN A CONTRACT 01 Competent Parties 02 Proper Subject Matter 03 Consideration 04 Agreement 05 Proper Form 06 Consent of the Parties  Selection of Contract The selection of contract type to be used for a construction project is made by the owner, acting upon the advice of his Engineer and his legal advisor. The selection must meet the owner Objectives and takes into account the constraints that might relate to the project. Consultants and contractors should be fully informed by the project objectives and constraints. The scope and the nature of the project will primarily affect the selection of type of contract.  Project Objectives SCOPE TIME COST The project scope defines the The scope and time are The cost of a project is closely extent or the area that the closely interrelated. Decisions related to scope and time. contract covers. Any must often be made on the The effect of the contract on additions or omissions during effect of increasing or price, and the various the life of the project will decreasing scope on time. If incentives and penalties that increase or decrease the the completion date of a can help to keep price steady quantity of work involved. project is critical, then must be discussed and Likewise, any changes in increasing scope will call for clearly defined. design must be discussed an accelerated program. The carefully to establish whether extra cost associated with or not they are likely to affect this acceleration must be the scope of the project. quantified. PROJECT CONSTRAINTS 01 Availability of funds. 06 Possibility of design changes. Availability of contractual 02 07 Availability of resources. incentives. 03 Method of tendering. 08 Seasonal working. 04 Project location. 09 Number of contractors willing or able to tender. 05 Target dates of the project. 10 Inflation. Project Delivery Methods The project delivery method translates what project parties are involved in the project and how they interact with each other and called also project organizational structure. The choice of an organizational structure should be related to project objectives and constraints. TRADITIONAL APPROACH This is the most common approach in civil engineering projects in which the design has to be completed before construction can start. Design and construction are usually performed by two different parties who interact directly and separately with the owner Advantages: - Price competition - Total cost is known before construction starts - Well documented approach used in most government projects. Disadvantages - Long time - Design does not benefit from construction expertise - Conflict between owner, contractor and A/E DIRECT LABOR In this approach, owner organization performs both the design and construction using its in-house labor force. - Used by large authorities -The owner performs both the design and the construction - May use consultants for some specialized designs - Most suitable for small projects - Can be used when expertise are available - Low risk projects - Inadequate scope definition DESIGN-BUILD In this approach, a single organization is responsible for performing both design an construction and, in some cases, providing certain “know-how” for the project. Advantages - One contract that may include know-how - Minimum owner involvement - Used for fast-track projects in order to reduce time - Coordination between design and construction and easier in implementing the changes Disadvantages - Cost may not be known until end of the construction - High risk to contractor and more cost to owner - Design-build company may reduce quality to save cost TURNKEY This approach is similar to the design-build approach but with the organization being responsible for performing both design, construction, know-how (if any), and project financing. Owner payment is then made at the completion (when the contractor turns over the “key”). An example is franchise projects in which a new branch of a restaurant chain needs to maintain the same design, construction quality, and food service quality. BUILD-OPERATE-TRANSFER (BOT) In this approach, a business entity is responsible for performing the design, construction, long-term financing, and temporary operation of the project. At the end of the operation period, which can be many years, operation of the project is transferred to the owner. This approach has been extensively used in recent years and is expected to continue. An example of its use is in express routes and turnpikes. A consortium of companies shares the cost (design, construction, financing, operation, and maintenance) and the profits gained from user fees, for a stipulated number of years. Afterwards, the project returns to the government to become publicly owned. This approach has also been used extensively in large infrastructure projects financed by the World Bank in parts of the world that cannot afford the high investment cost of such projects. PROFESSIONAL CONSTRUCTION MANAGEMENT In this approach, the owner appoints a PCM organization (also known as Construction Management organization) to manage and coordinate the design and construction phases of a project using a Teamwork approach. The design may be provided by specialist design firms and in some cases by the PCM organization. With high level of coordination between the participants, innovative approaches of overlapping design and construction (i.e., fast tracking) can be adopted. The PCM organization aims at holding a friendly position similar to that of the consultants in the traditional approach. CONTRACTUAL RELATIONSHIPS Within each project delivery method, the contractual relationships among the project participants can take various arrangements and the owner needs to make a decision regarding the proper arrangement that suits the project and the parties involved. CONTRACTUAL RELATIONSHIPS  TYPES OF CONTRACT There are many types of contracts that may be used in the construction industry. Construction contracts are classified according to different aspects. They may be classified according to the method of payment to the contractor. When payment is based on prices which submitted by the contractor in his tender, they are called cost-based contracts. Examples are cost-reimbursable and target cost contracts. Contracts may be classified in the point of view of the risk involved. The range of risk runs from a fixed price contract to a totally non-risk cost-reimbursable contract at the other end.  LUMP-SUM CONTRACT A single tendered price is given for the completion of specified work to the satisfaction of the client by a certain date. Payment may be staged at intervals on the completion. The contract has a very limited flexibility for design changes. The tendered price may include high level of financing and high risk contingency. Where considerable risk has been places with the contractor, this contract may lead to cost cutting, trivia claims, or bankruptcy. Contract final price is known at tender. A lump-sum contract would seem to prevent risks for the client where in fact it just changes them. An important risk to the client is that of not receiving competitive bids from desirable contractors who may avoid a high-risk lump-sum contract.  ADMEASUREMENT CONTRACT In this type of contracting, items of work are specified in Bills of Quantities or Schedule of Rates. The contractor then specifies rates against each item. The rates include risk contingency. Payment is paid monthly for all work completed during the month. The contract offers a facility for the client to introduce changes in the work defined in the tender documents. The contractor can claim additional payment for any changes in the work content of the contract. Claims resolution is very difficult because the client has no knowledge of actual cost or hidden contingency. Tender price is usually increased by variations and claims. Two forms of admeasurement contract are usually used: bill of quantities and schedule of rates.  ADMEASUREMENT CONTRACT Bill of Quantities Schedule of Rates Contract Contract It contains inaccurate quantities of work, possibly Tenderers enter rates with upper and lower against each item of the probable limits. Therefore, it is estimated quantities of common for separate rates work. The quantities are to be quoted for labour, plant, re-measured during the and materials. The contract course of the contract, price is derived by measuring the man-hours, plant-hours valued at the tendered and the quantities of rates and the contract materials actually consumed, price adjusted and then pricing them at the accordingly tendered price. This contract is best suitable for repetitive works.  COST REIMBURSABLE CONTRACT The contractor is reimbursed for actual cost plus a special fee for head office overheads and profit, no special payment for risk. Payment may be made monthly in advance. The contract involves a high level of flexibility for design changes. Final price depends on changes and extent to which risks materialize. The contractor must make all his records and accounts available for inspection by the client or by some agreed third party. The fee may be a fixed amount or a percentage of actual costs. This contract has no direct financial incentives for the contractor to perform efficiently. It may be used when it is desirable for design to proceed concurrently with construction and when the client wishes to be involved in contract management.  TARGET COST CONTRACT Cost targets may be introduced into cost-reimbursable contracts. In addition to the reimbursement of actual cost plus percentage fee, the contractor will be paid a share for any saving between target and actual cost, while the fee will be reduced if actual cost exceeds the target. The target figure should be realistic and the incentive must be sufficient to generate the desired motivation. Specified risk' can be excluded from the tendered target cost. When these occur, the target cost is adjusted accordingly and the client pays the actual cost incurred by the contractor. The target may also b' adjusted for major changes in work and cost inflation. This contract can be used in the same circumstances as the cost-plus contract.  TIME AND MATERIAL CONTRACTS T&M contracts are a hybrid type of contractual arrangement that contains aspects of both cost-reimbursable and fixed- price-type arrangements. T&M contracts resemble cost- type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, T&M contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, T&M arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers. Thank You  MODULE 4 BIDDING AND PROCUREMENT DAN VINCENT R. DIAMANTE IV, uap, pmp  PROCUREMENT Shall mean acquiring goods and or services from an outside source. Major cost are contributed by procurement of materials, services and equipment. The challenge is on how to gain efficiency and cost effectiveness in terms of procurement. This also ensures to achieve timely delivery of project requirements.  PROCUREMENT PLANNING Procurement planning involves identifying which project needs can be best met by using products or services outside Procurement planning includes deciding on: Whether to procure How to procure What to procure How much to procure When to procure  TYPES OF CONSTRUCTION BIDS OPEN TENDERING With open tendering, anyone is allowed to submit a bid on the project. This is the method most commonly used on government projects, and it is generally considered to create the most competition for a job, driving prices down. In fact, many public projects are required to solicit contractors through an open tender.  TYPES OF CONSTRUCTION BIDS NEGOTIATED TENDERING With negotiated tendering, the property owner identifies a single contractor to perform the work and negotiates a contract with them. This method of tendering is generally reserved for highly specialized projects, and it may be considered anti- competitive in certain cases.  TYPES OF CONSTRUCTION BIDS SELECTIVE TENDERING Selective tendering is the middle ground between open and negotiated tendering: A small set of predetermined contractors is invited to submit bids on a project. Typically, this method of tendering offers a balance between competition and simplicity in the bid selection process.  TYPES OF CONSTRUCTION BIDS SERIAL TENDERING Serial tendering is used for situations where a property owner is soliciting bids for a series of similar projects over a period of time. For instance, a housing developer may be building hundreds of residential homes over a three-year period. Serial tendering can reduce the burden of repeatedly soliciting bids for similar projects, though it does potentially reduce competition.  BIDDING STAGES 1. PREPARATION STAGE a. Selective Bidding i. Advertisement to Bid ii. Invitation to Bid b. Qualifying Bidders Past record of construction works Business history & organization Scope of operations Details of assets and liabilities etc. Net Financial Contracting Capacity  FINANCIAL CONTRACTING CAPACITY EVALUATION 1. Total Current Assets (based on audited Financial Statement) (3 years…) Php._____________________ (a) 2. Total Current Liabilities (based on Audited Financial Statement) (3 years…) Php._____________________ (b) 3. Present Networth (a-b) Php. ____________________ (c)  FINANCIAL CONTRACTING CAPACITY EVALUATION 4. On Going projects Project name Contract Amount % Accomplished Balance W ________________ ___________ ___________ X ______________ _____________ ___________ Y ______________ _____________ ___________ Z ______________ _____________ ___________ Total Amount of uncompleted portion of the project Php. ________________ (d)  FINANCIAL CONTRACTING CAPACITY EVALUATION 5. Net Financial contracting capacity (NFCC) NFCC = ( c x K ) – d Wherein: (constants…) K = 18 (if more than 2 years contract duration of the project) K = 15 (if more than 1 year contract duration of the project) K = 12 (if Less than 1 year contract duration of the project) NFCC shall not be less than the project cost.  BIDDING STAGES 1. PREPARATION STAGE c. Issuance of Bid Package Invitation to Bid Drawings and Specifications Bid Form Notice to Bidders Instruction to bidders Proposed General and special conditions of contracts Bid bonds  BIDDING STAGES 1. PREPARATION STAGE d. Pre-Bid Conference Commonly Held two to three weeks before the bids are due. It focuses potential bidders on the project and allows the architect to reiterate key points on the documents.  BID CONFERENCE AGENDA Project background Confirmation of bid date and procedures Identification of special issues and working conditions Any update on the post-bid schedule Questions and observations about the project Scope of works Exceptions  BIDDING STAGES 2. BIDDING PROPER a. Submission of Bids Must be received in writing. Sealed in an opaque envelopes prior to deadline. b. Opening a Bid Commonly, contractors are chosen on the basis of the lowest responsible bid to prevent suspicion of favouritism and avoid ill feeling among contractors.  BIDDING STAGES 2. BIDDING PROPER c. Clarificatory Meeting Review and checking of bids Missing and lacking items on bids Subject for resubmission based on the clarified items d. Contractor Selection No withdrawal of bids or change in did is allowed once the bids have been opened except the bidder can prove substantial error in bid calculation. In case of substantial error in bid calculation, withdrawal might be appropriate with award of the contract to the next lowest bidder.  BIDDING STAGES 3. AWARDING OF PROJECT Usually Ten (10) days of Bid Opening Unsuccessful bidders are often given a list of bid figures and bid deposits are returned once the bid/contract documents are returned. Inform the successful bidder in a way that does not form a legally binding agreement before the contract documents are signed.  BIDDING STAGES 3. AWARDING OF PROJECT In case failure of negotiation or agreement on the 1st selected bidder the next two or three lowest bidders are retained for a specific period as a contingency measure. Final negotiations are done before awarding Commissioning of contractor / Issuance of NOA/NTP  BIDDING STAGES 3. AWARDING OF PROJECT Preliminary Submittals prior to contractual agreement: Proposed suppliers of materials and equipment Details of the amount of work to be undertaken Construction methodology and work schedule Staff qualifications List of intended sub-contractors Bonds Thank you CONSTRUCTION MANAGEMENT AND CONTROLS Dan Vincent R. Diamante IV,uap,pmp PROJECT OBJECTIVES  SCOPE MANAGEMENT Management process to ensure that the required scope is fulfilled to the satisfaction of the Owner. Managing what is in and what is not included in the project.  TIME MANAGEMENT Management process to ensure timely completion of the project.  COST MANAGEMENT Management process to ensure that project can be completed within the approved budget.  FINANCIAL CONTROL Periodically review design changes by the owner and revise the project cost as the construction progresses. Identification of work items whose actual cost are exceeding their budget cost.  FINANCIAL CONTROL Mitigate the occurrence of additive change orders. Help ensure that additive change orders are kept within 5% maximum (except as required by the client) by exercising due diligence at strategic hold points within the different project phases.  FINANCIAL CONTROL Estimating the total cost of the project at completion based on the cost record so far and expectations of the complete unfinished items.  COST REPORTING These are tools intended to provide timely information about the status of the project budget so that managers can take actions indicated to attempt to bring the project into compliance with the original budget.  QUALITY MANAGEMENT Management process to ensure that the works is done in accordance to the quality standard established for the project (MPSS -Minimum Performance Standards and Specifications).  QUALITY CONTROL This is to perform sufficient inspection and test of all items of work to ensure conformance to applicable specifications and drawings with respect to the following: Workmanship Finish Functional performance Exceptions: Specific government control inspections/test.  QUALITY CONTROL The controls should be adequate to cover all construction operations including both on-site and off-site fabrication and shall be keyed to the proposed construction sequence. Preparatory Inspection Initial Inspection Follow-up Inspection  PREPARATORY INSPECTION To be performed prior to beginning any work on any definable segment of work. This includes the review of contract requirements, examination of work area, conformance of materials and equipment of the contractor.  INITIAL INSPECTION To be performed as soon as a representative segment of work item has been accomplished and to include examination of the quality of workmanship and a review of control testing for compliance with contract requirements.  FOLLOW-UP INSPECTION To be performed daily or as frequently as necessary to assure continuing compliance with contract requirements, including control testing until completion of the particular segment of work.  RESOURCE MANAGEMENT Management process to ensure that there is sufficient labor, material and equipment provided to complete the project.  PROCUREMENT MANAGEMENT Management process by which resources required by a project are acquired. Includes development of procurement strategy, preparation of contracts, selection and acquisition of suppliers and management of contracts. THANK YOU PROJECT PLANNING AND SCHEDUING Dan Vincent R. Diamante IV, uap,pmp INTRODUCTION Planning is a general term that sets a clear road map that should be followed to reach a destination. The term, therefore, has been used at different levels to mean different things. Planning involves the breakdown of the project into definable, measurable, and identifiable tasks/activities, and then establishes the logical interdependences among them. Generally, planning answers three main questions: What is to be done? How to do it? Who does it? INTRODUCTION In construction, for example, plans may exist at several levels: corporate strategic plans, pre- tender plans, pre-contract plans, short-term construction plans, and long-term construction plans. These plans are different from each other; however, all these plans involve four main steps: Performing breakdown of work items involved in the project into activities. Identifying the proper sequence by which the activities should be executed. Activities representation. Estimating the resources, time, and cost of individual activities.  PROJECT PLANNING STEPS The following steps may be used as a guideline, or checklist to develop a project plan: 1. Define the scope of work, method statement, and sequence of work. 2. Generate the work breakdown structure (WBS) to produce a complete list of activities. 3. Develop the organization breakdown structure (OBS) and link it with work breakdown structure of identified responsibilities. 4. Determine the relationship between activities. 5. Estimate activities time duration, cost expenditure, and resource requirement. 6. Develop the project network. WORK BREAKDOWN STRUCTURE (WBS) The WBS is described as a hierarchical structure which is designed to logically subdivide all the work-elements of the project into a graphical presentation. The full scope of work for the project is placed at the top of the diagram, and then sub-divided smaller elements of work at each lower level of the breakdown. At the lowest level of the WBS, the elements of work is called a work package. A list of project’s activities is developed from the work packages. SAMPLE WBS  PROJECT ACTIVITIES The building block (the smallest unit) of a WBS is the activity, which is a unique unit of the project that has a specified duration. An activity is defined as any function or decision in the project that: consumes time, resources, and cost. Activities are classified to three types: Production Activities Procurement Activities Management Activities  PROJECT ACTIVITIES PRODUCTION PROCUREMENT MANAGEMENT Activities that involve the use Activities that specify the Activities that are related to of resources such as labor, time for procuring materials management decisions such equipment, material, or or equipment that are as approvals, vacations, etc. subcontractor. This type of needed for a production activities can be easily activity. identified by reading the project’s drawings and specifications.  ACTIVITIES RELATIONSHIPS In order to identify the relationships among activities, the planning team needs to answer the following questions for each activity in the project: Which activities must be finished before the current one can start? What activity(ies) may be constructed concurrently with the current one? What activity(ies) must follow the current one?  ACTIVITIES RELATIONSHIPS A circle of activity precedence will result in an impossible plan. For example: if activity A precedes activity B, activity B precedes activity C, and activity C precedes activity A, then the project can never be started or completed.  ACTIVITIES RELATIONSHIPS Suppose that a site preparation and concrete slab foundation construction project consists of nine different activities: A. Site clearing (of brush and minor debris), B. Removal of trees, C. General excavation, D. Grading general area, E. Excavation for utility trenches, F. Placing formwork and reinforcement for concrete, G. Installing sewer lines, H. Installing other utilities, I. Pouring concrete. ACTIVITIES RELATIONSHIPS OVERLAP OR LAG Overlap between activities (negative lag) is defined as how much a particular activity must be completed before a succeeding activity may start. The absence of overlap means that the first activity must finish before the second may start. A negative overlap (lag) means a delay is required between the two activities  TYPES OF ACTIVITIES RELATIONSHIPS FINISH TO FINISH TO START TO START TO START (FS) FINISH (FF) START (SS) FINISH (SF) The successor activity The finish of the The start of the The successor activity can begin only when successor activity successor activity cannot finish until the the current depends on the finish depends on the start current activity activity completes. of of the starts. the current activity. current activity.  NETWORK ANALYSIS The general name given to certain specific techniques which can be used for planning, management and control of project. The two most useful techniques of project management: 1. Program Evaluation and Review technique (PERT) 2. Critical path method (CPM) ACTIVITY NETWORKING ACTIVITY NETWORKING