Category: Management of Construction

The management of construction is an enterprise that involves many people with diverse interests, talents and backgrounds. The owner, the design professional and the contractor comprise the primary triad of parties, but others, such as subcontractors, material suppliers, bankers, insurance and bonding companies, attorneys and public agency officials, are vital elements of the project team whose interrelated roles must be coordinated to assure a successful project. Throughout the project life cycle, from the time the owner first contemplates launching a construction project to that celebrated time, many months or years later, when the completed project is ready for use, the tasks carried out by the various parties vary in type and intensity. In this book, we consider the roles and responsibilities of the many parties at each phase of the construction project life cycle. The primary focus here is on the construction contractor, who carries the lead responsibility for the on-site installation work and all of the associated planning and followup. It is important, at the same time, to understand how other people and organisations contribute to project success.

Category: Management of Construction Construction Proposal preparation, submittal and opening

The final steps in the contractor selection phase involve decisions about the size of the markup to be added to the net project cost, the submittal and opening of all tenders, the selection of the successful contractor and, at last, the notice to proceed, which directs the contractor to begin work. Turning the estimate into a tender Pilcher (1992) defines

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Category: Management of Construction Construction Value engineering

In our consideration of the role of the project planner and designer, we have discussed the importance of constructability analysis and value engineering. Formal value engineering is an essential activity throughout the construction process as well. In this process, the contractor is invited to suggest changes to the design that will result in cost savings; if a proposal is accepted,

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Category: Management of Construction Construction Cost-estimating software

The process described above for compiling construction cost estimates might be described as simple, routine, time consuming, even boring, but also essential, with requirements for accuracy, organisation, no omissions and no duplications. The spreadsheets used to prepare Tables 4.1 through 4.4 are examples of the use of information technology to manage effectively and efficiently the large amounts of cost-estimate data in a simple,

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Category: Management of Construction A unit-price/measure-and-value example

Our second example of a cost estimate is for the construction of an embankment and roadway. Once again, the example is oversimplified but still includes the basic concepts. In this example, the result of our effort will be a series of unit prices for each of the specified bid items, as required by the tender instructions. These unit prices, multiplied

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Category: Management of Construction Construction A lump-sum/fixed-price example

Consider a ‘project’ that will construct a cast-in-place concrete foundation wall, as shown in Figure 4.5. We desire to compile a single price for submittal to the owner for this lump-sum contract. The work will consist of mobilisation; clearing and grubbing an area of 400m2; excavating through silt and rock to a depth of 400 mm as shown and removing

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Category: Management of Construction Construction Subcontract work

The final category of direct cost includes work that will be performed by subcontractors. Typically these are specialty contractors that will sign a contract with the general contractor for work in such areas as painting, plumbing, electrical work, concrete finishing and traffic control, if their proposals are accepted and if the general contractor is chosen. Generally, the contractor wants to

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Category: Management of Construction Construction Elements of net project cost

Direct costs are those costs required to conduct operations that result directly in the installation of some component of the physical project, such as applying paint or connecting electrical cables or some other direct production work, such as soil excavation and hauling. The ‘big four’ among the elements of direct cost are labour, materials, equipment and subcontractor work. Sources of

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Category: Management of Construction Construction Cost estimating

As suggested above, the major effort in tender preparation for a lump-sum/fixed-price or unitprice/ measure-and-value contract is the development of the cost estimate. We shall describe the several elements of such a cost estimate and the process for putting an estimate together, for both of these types, using realistic though oversimplified examples. We shall also consider the use of estimating

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Category: Management of Construction Construction Pre-tender meetings

Two types of meetings are common during the time the tender proposal is being prepared. One type is internal to the contractor’s organisation. Attendees include the cost estimating staff, personnel expected to be in supervisory positions on the project if the contractor is selected and representatives from general company management. During a series of such meetings, topics comprise all those

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Category: Management of Construction Construction Preliminary schedule

In preparing its proposal, the contractor will need to develop a preliminary project schedule. This schedule is not to be confused with the detailed schedule that will be prepared after the job is awarded. This later effort, described in Chapters 5 and 6, is used both for in-depth planning of the multitude of individual project activities and for the control

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