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PARTIES INVOLVED:
1.
2.
3.
4.
5.

OWNER
DESIGNER
SUPPLIER
CONSTRUCTOR
END USER

- Is the step in which plans, specifications,

materials and permanent equipment are
transformed by a constructor usually called a
contractor, into a finished facility.

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CONTRACT

- determines the actions of the parties in

their dealings with each other. The parties to a
contract are bound to each other for a
certain period of time by a unique and
exclusive relationship (privity of contract) they
have created for their mutual benefit, which
gives them both obligations which they have
agreed to accept so that both may benefit.

CONSTRUCTION CONTRACT DOCUMENTS

-define the agreement between the owner and
the contractor. It is a two-party agreement that does
not include the designer

1. AGREEMENT AND ACCEPTANCE

2. CONSIDERATION

3. CAPACITY

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4. LEGAL

-Also known as FIXED FREE

CONTRACT.
-Contract where there is an

agreement in which one party

consents to pay another party a set of
an amount for completing the work or
providing the goods described in the
agreement.

-A contract agreement wherein the

purchaser agrees to pay the cost of all

labor and materials plus an amount for
contractor overhead and profit (usually
as a percentage of the labor and
material cost).

COMMON TYPES OF
CONTRACTS

-This kind of contract is based on

estimated quantities of items included
in the project and their unit prices. The
final price of the project is dependent
on the quantities needed to carry out
the work.

-Compensation is based on the

engineering and/or contracting
performance according an agreed
target - budget, schedule and/or quality.
The two basic categories of incentive
contracts are
Fixed Price Incentive Contracts
Cost Reimbursement Incentive Contracts

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-Compensation is based on a
percentage of the construction costs.

-Compensation is based on the engineering

and/or contracting performance according
an agreed target - budget, schedule and/or
quality.
The two basic categories of incentive
contracts are
Fixed Price Incentive Contracts
Cost Reimbursement Incentive Contracts

1. RESIDENTIAL

2. BUILDING-COMMERCIAL

3. INDUSTRIAL

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4. HIGHWAY HEAVY

5. SPECIALTY

1. RESIDENTIAL
2. BUILDING-COMMERCIAL
3. INDUSTRIAL

4. HIGHWAY HEAVY
5. SPECIALTY

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1.
Design the concrete structures with as
many duplicate members as practical in
order to permit the reuse of forms without re
building

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2. Simplify the design of the structure

where possible

4. Eliminate unnecessary special

construction requirements.

6. Specify a quality of workmanship that

is consistent with required project quality.

3. Design the use of cost-saving equipments

and methods.

5. Design to minimize labor-intensive

activities.

7. Furnish adequate subsurface information

where possible.

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8.Refrain from requiring the constructor to

assume the adequacy of the design or the
responsibility for information that should
be furnished by engineer or architect.

10. Write simple, straight forward

specifications which clearly state what is
expected define either the results
expected or the methods of
accomplishing the desired results, but
not both.

12. Hold pre-bidding conferences with

constructors in order to eliminate
uncertainties.

9. Use local materials when they are

satisfactory.

11. When possible, use standardized

specifications which are familiar to the
constructors.

13. Use inspectors who have sufficient

judgment and experience to understand
the project and to give them the authority
to make decisions.

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1.
a.
b.
c.
d.
e.
f.
g.
h.
i.

Prebidding studies of the project and the site to

determine the effect of:
Topography
Geology
Climate
Sources of material
Access to the project
Housing facilities
Storage facilities
Labor Supply
Local Services

3. The payment of a bonus to the key personnel for

production in excess of a specified rate.

2. The use of alternate construction equipment, having

higher capacities, higher efficiencies, higher speed,
more maneuverability, and lower operating cost.

4. The use of radios in means of communication

between the headquarters office and key personnel
on projects covering large areas.

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5. The practice of holding periodic conferences with

key personnel to discuss plans, procedures, and
results.

6. Adoption of realistic safety practices on a project as a

means of reducing accidents.

7. Considering the desirability of subcontracting

specialized operations to other contractors who can
do the work more economically than the general
contractor.

8. Considering the desirability of improving shop and

serving facilities for better maintenance of
construction equipment.

This is a formalized application of a specialized

branch of engineering whose objective is to effect
economy in the cost of constructing a project.

Value engineering maybe applied to a project in

One or Two Stages.

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1. During or immediately after the completion of the

plans and specifications, and prior to their release
to contractors.

2. After a contractor is awarded for the construction of

the project.

-Each piece of construction equipment is specifically

designed by the manufacturers to perform certain
mechanical operations
-The proof of how well the planner understands the
projects and coordinates the utilization of the
companys equipment is in the bottom line when the
contract is completed is by PROFIT OR LOSS.

-Planning is required for,

Production
achievement, Cost control, Commitment,
Consistency, Communication, and
Coordination of the project and the parties
involved in the project.

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Planning must also clearly identify the work

to be done and establish the following:
1. Desired schedule
2. Realistic cost estimates
3. Quality objectives
4. The Best contracting strategy.

Formal Planning Involves the following

Steps:
1.

2. Divide the Project down into specific

and discrete activities.

- For large projects, combine small
activities into larger activities
(hierarchical). This is known as
hammocking.

5. Portray a plan in a form of a network

which shows interrelationships between
the activities.
6. Place activities in time sequence. A Bar
Chart is an excellent way of depicting this
information.

Analyze the project, establish the scope

and feasibility, and specify the
limitations involved:
Time
Money
Location
Competition of resources
Coordination requirements

3. Estimate the time, resources, and

cost required to perform each
activity. Such estimates must be
reasonable.
4. Place activities in proper relation to
each other with respect to their logic
constraints.

7. Apply limitations of time, available

resources, climate, etc. This will provide:
The times for delivery of materials and
installed equipment.
The classifications and number of
workers needed and the periods of time
will be needed.

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- This method of project planning

involves the identification of specific
activities, their durations and
interrelationships.

1. Activity-On-Arrow (AOA)
- commonly called arrow
diagramming.
2. Activity-On-Node (AON)
- commonly called precedence
diagramming.

- Each of these types, both generally

termed critical path method (CPM).
- They uses the same information in a
slightly different form.

Basic principles and limitations of

AOA and AON are that:
They portray the dependency
relationships among activities.
All activities have a single duration
and must have an identifiable
beginning and end.

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All activities preceding a given

activity must be completed before

the given activity can begin.
Basic networks do not indicate the
time sequence of a project.
An activity may not be interrupted.
(A major limitation).

ACTIVITY- A specific job or task that

has to be performed.
EVENT- The start or completion of an
activity. It requires no time in itself
and is usually indicated on the AOA
diagram by a number enclosed in a
circle. The event is sometimes
referred as a node.

ARROW- A line drawn to represent

each activity in a network, joining
two events(the start and the finish of
an activity).
AOA Network- This is the arrow
diagram drawn to portray the proper
relationships of activities in a
project.

DUMMY- is an artificial activity,

usually represented on the diagram
by a dotted line to describe the
proper relationship on the activities.
EARLY START (ES)
- This is the earliest time that an
activity can start.

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DURATION (D)
- The estimated time to perform an
activity.
EARLY FINISH (EF)
- Is the earliest time that an activity
can be finished.
- EF = ES + D

TOTAL FLOAT (TF)

- This is the amount of time that an
activity maybe delayed without
delaying the completion of the
project.
TF= LS - ES = LF EF.

LATE START (LS)

- Is the latest time that an activity can be
started without delaying the completion
of the project.
- LS= LF-D
LATE FINISH (LF)
- Is the latest time that an activity can be
finished without delaying the
completion of the project.
- LF= LS+D

FREE FLOAT (FF)

- Is the time that the finish of an

activity can be delayed without

delaying the early start time of any
following activity.
- FF= ES of the following activity EF
of this activity.

CRITICAL PATH
- Is the longest interconnected path of
activities through the network.
CRITICAL ACTIVITY
- An activity on the critical path. It has
a zero float time, that is LS ES = 0
And LF EF = 0.

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1. Separate the project into discrete

activities, each with a definite
starting point and ending point.
2. Estimate the duration of each
activity.
3. Determine the proper sequencing of
each activity, including which
activity must precede or follow other
activities.

4. Draw an AOA network with the

activities and events which are
properly interconnected.
5. Examine the network and optimize,
if possible, to eliminate unnecessary
dummy activities.
6. Assign numbers to all events, being
sure that the from number is
always less than the to number.

7. Make a forward pass and backward pass

through the network to establish ES, LS,
EF, LF times for all activities.
8. Determine the critical path or paths and
critical activities.
9. Prepare a table listing all activities, their
designations, durations, and ES, LS, EF
and LF times, and their total float.

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