Construction Project Management - Key Concepts PDF

PAYLOAD 1 Project: A project is a temporary endeavor undertaken to create a unique product or service. Activity: A subset of the project. Main participants (stakeholders) of project are: 1. Owner 2. Contractor 3. Consultant (Engineer) - A Conflict of interests exists between owner and Contracto...

PAYLOAD 1 Project: A project is a temporary endeavor undertaken to create a unique product or service. Activity: A subset of the project. Main participants (stakeholders) of project are: 1. Owner 2. Contractor 3. Consultant (Engineer) - A Conflict of interests exists between owner and Contractor Owner: - Owners could be Public or private - Responsible for selecting qualified designers, consultants, and contractors. Consultant (Engineer): - His objective is to satisfy the owner needs in the project General Contractor: - His objective is to finish the project in a reasonable time, min. cost (max. profit. Quality is second priority). - Prepare the tender, time schedule, and Cash flow. - A technical report is required about Construction Project Delivery Methods Program: Collection of related projects. Portfolio: Collection of programs and projects. - Time lag is working days. - projects are similar is not a characteristic of a project. - Histogram is the chart that provides daily consumptions. - Site overhead is indirect cost. - Supervision crew cost is indirect cost. - Engineer’s salary is an indirect cost. - WBS: Work breakdown Structure. - Used to organize activities at each project phase. - Portfolio: related to top-level management. - Contract duration defined by the owner. - Consultant prepare project time. - Consultant satisfies owner's needs. - Production rates & schedules are defined by the contractor. - If the work is stopped, the contractor should prepare a notice of claim. - Contractor is selected at the 3rd phase. - Critical path doesn't have to pass through all critical activities. - TF (Total Floats): The period at which an activity can be delayed without delaying the critical path. - FF (Free Floats): The period at which an activity can be delayed without delaying the successive activities. - Most common resource that can be constrained: Labor. - Invitation to tender doesn't contain project cost. - Burgess Method: used to obtain the best schedule for resource leveling. - Resource allocation: limit imposed on a specific resource. - Lead: Amount of time where a successor activity **can** be delayed WRT predecessor activity. - Lag: Amount of time where a successor activity **will** be delayed WRT predecessor activity. - Planning and controlling a project effectively in all phases is called: project management. - Good project management doesn't have to have maximum quality. - Scope of the project can be changed. - Project risk is not an impact of poor project management. - Project time schedule doesn't define project quality. - Estimating activity duration doesn't depend on activity cost. - Longest phase is construction. - Concurrent relation: relation between project phases that're preferable. - Resource leveling is used to enhance resource profile. - MasterFormat is a document that provides guidelines for preparing WBS projects. - Areas under histogram are equal to area under resource loading histogram. - During WBS, projects are divided into main work packages & activities are organized & Scope. - Every project has many histograms. - Project configuration management is a knowledge area. - We consider only unskilled labor, when we draw a labor histogram. - Preparing project tender is done at the bidding phase. - Total float can be negative. - The stage that requires max time for completion is execution. - TF = LF - OD - ES. - FF = Earliest finish - earliest start. - Independent float: start of the activity can be delayed without affecting the EST. - Project manager creates the project team. - Trade Offs: (TCP)Time/Cost/Performance. PAYLOAD 2 - Main disadvantage of the point system in bidder's evaluation (direct assignment) is lack of competition. - Contractor can know the conditions of the contract during announcement. - Annnouncement (invitation to tender) doesn't contain project cost. - Preparing the project tender is done at the bidding phase. - The contractor can't improve the cash flow diagram in increasing retention. - Pd < contract duration - In preparing project calender, the time lag of all relations is considered as working days. - Project are similar is not characteristic of a project. - Labor is not a stakeholder. - Contractor is the stakeholder who prepare the prodect time schedule. - Contract duration is defined by the owner. - Critical path DOESN'T HAVE to pass through all critical activities. - Projects can't have variable scope - Conflict of interest is between owner and contractor. - General consultant is the one that should satisfy the owner's needs. - total float can be negative. - Estimating the activity duration doesn't depend on its cost. - Concurrent relation: relationship between project phases that are preferable. - Most suitable method used to prepare time schedule for road project is LOB - Construction is the longest phase. - Contractor is selected at the 3rd phase. - Project is divided into main work package during WBS - The main advantage of LOB over CPM is that LOB often ensure continuous work in same activity. - It's also better for resource profiling. - Financial envelope contains BOQ - Bid bond can be found in financial envelope - 1st step in the tender is jury identification. - Working Capital: Money needed to finance the project. PAYLOAD 3 - Contractor pays a penalty if completion time > PDmax - When a change occurs in the project, the consultant sends the "CO" document to the contractor. - The document that provides guidelines for preparing the WBS of the project is Masterformat. - Splitting: The work on an activity can stop and restarts again. - The consultant uses NCR to reject an item due to bad quality. - Production rates are defined by a contractor. - Area under the histogram of resource leveling is equal to area under resource loading histogram. - When the work at site stops due to owner's order, he expects to receive a "notice to claim". - When a conflict occurs between documents, priorities of documents is followed. - Parameteric method: used for cost estimation. Construction submitals are used to: 1. Reduce claims. 2. Guarantee contractor's right. 2. Guarantee owner's right. Contractor can improve cash flow by: 1. Getting down payments. 2. Increase profit. 3. Subcontracting the work. Project documents: 1. Meetings (ex. Amazon 6-page letter) 2. BOQ. 3. Special Conditions Indirect costs: - Equipment transportation - Temporary facilities - Site overhead. - Engineer's salaries. Direct Costs: - Material cost - Labor Cost - Equipment cost. Project time schedule defines the following: 1. Activity name. 2. Original durations. 3. Construction sequence.  ‫‪Invoices‬‬ ‫مستخلصات\فواتير‬ ‫‪Retention‬‬ ‫مستقطعات الضمان\ ضمانات‬ ‫‪Down/Advanced Payment‬‬ ‫عربون‬ ‫‪---‬‬ ‫‪---‬‬ ‫‪Masonry‬‬ ‫بحط الطوب بتاع الحيط ‪ ،‬سواء فوق أو تحت األرض‬ ‫‪Committee‬‬ ‫لجنة‬ ‫‪Jury‬‬ ‫هيئة المحلفين‬  TENDER TENDER DOCUMENT CONTENTS: 1. Contract Agreements. 2. Meeting schedules. 3. Drawings (Site, Building, Area, etc…) 4. Technical Specifications 5. Bill of Quantities (BoQ) (‫)المقايسة‬ 6. General Conditions. 7. Special Conditions. 8. Time Schedule and planning. 9. Soil Report (for construction working) 10. Other plans (Safety, Traffic Management, Environmental, etc…) Importance of Quantity Surveying (take-off): Estimating initial costs of the project. Establishing Bill of Quantities. Examining and surveying the economical value of the project. Calculating monthly invoices from the project income. Assisting in calculating duration of activities in the project timeline. Acknowledging various materials, equipment and labor required for optimal financial and time management for the project. Preparing Project/Tender Documentations to prepare for tendering process. Applying project contracts like changing Retention or Advanced payments. Technical Specifications: Defines a set of requirements that needed materials or Products must meet or exceed it. Contents: Scope of work (What to include and what NOT to include) Function. Tools and Equipment used. Construction Procedure and methods. Materials used in the product. Contents & percent of them. Dimensions. Appearance and Color. Class and Brand. Location. Legal Requirements and Codes. Tests and results reference. This is written by the advisor of the project. PROJECT CONTRACT PIORITIES: 1. Project Contract. 2. Pretender Meetings. 3. Special Conditions. 4. General Conditions. 5. Technical Specifications. 6. Drawings. 7. Bill of Quantities.  Contractor Selection ‫المناقصة مع المقاولين‬ Two methods for choosing a Contractor: Direct Assignment: You reach this specific contractor and start your offer with him/her. Tender: This process is done by offering the project and its requirements for a group of contractors, then select the best offered contractor between them. TYPES OF TENDER: Open Tender: Allows any one to submit their offers. Selective Tender: Allow a selected group of people to submit their offers. There are selected by invitation Negotiated Tender: This can be done by a single or multiple contractors in order to reduce the costs of tendering. TENDER PROCEDURE: 1. Jury Identification: Create a committee (‫ )لجنة‬to select and evaluate available contractors. 2. Announcement: Announce the Tender and it’s requirements as an ad or something. 3. Queries & Answers: A meeting to discuss the project and other related procedures. 4. Tender Submission: Contractors submit their Tender Documentation Offer as describe above. 5. Tender Evaluation: Each document is evaluated by comparing prices and technical needs. 6. Winner Announcement: Announce the selected contractor/s for this Tender. 7. Contract Agreement Signing: Prepare the contracts between the business owner and the contractor, then sign their agreement on their contract. Tender Evaluation: The Tender is evaluated Financially(Financial Envelope) and Technically (Technical Envelope), The technical envelope is evaluated first to check if they meet the technical requirements of the project. If the tender offer doesn’t meet the specs of the project, it is dismissed without opening the financial envelope. Then the offerer is then notified and return him his Financial Envelope. The accepted contractors are then financially evaluated for the project, 99% it’s chosen by the cheapest option. Technical Envelope Financial Envelope General information, contact information. Priced Bill of Quantity C.V. Financial Conditions of Contractor ( ‫طلبات‬ Similar projects and Background. )‫معينة من المقاول‬ Organization chart of Contracting company. Years of Experience in the field. Staff. Equipment. Bid Bond. Project Duration