Construction Management: Delivery Methods, Contracts, and Project Control

Vocabulary practice flashcards covering construction management principles, project delivery systems, contract types and documents, supervision groups, management cycles, and site issues.

Design–Bid-Build (DBB)

A traditional project delivery method where design and construction occur sequentially under separate contracts, remaining the preferred system for Philippine public infrastructure to ensure transparency and compliance with procurement laws.

Design–Build (DB)

A project delivery method combining design and construction under a single contract with one firm or consortium, enabling fast-tracking where construction starts before the complete design is finalized.

Construction Contract

A legally binding agreement between the owner and the contractor outlining the scope of work, contract cost, project schedule, payment terms, and allocation of project risks.

Lump Sum Contract

A fixed-price contract that mandates the contractor to complete the entire project for a single predetermined price, offering high cost certainty when plans and specifications are fully defined.

Unit Price Contract

A contract where compensation is calculated from pre-established rates multiplied by the actual quantities of work measured and completed on site.

Cost Plus Contract

A contract under which the owner reimburses the contractor for actual construction expenses and pays an additional fee (fixed, percentage, or performance-based) for their services.

Guaranteed Maximum Price (GMP) Contract

A contract that sets an upper ceiling on the owner's financial liability, where the contractor guarantees that the total cost will not exceed this cap unless authorized changes occur.

Time and Materials (T&M) Contract

A contract where the contractor is reimbursed for actual labor hours worked, equipment utilized, and materials consumed, offering the greatest flexibility but lowest cost certainty.

Contract Documents

The complete collection of legal and technical documents that define the project scope, quality standards, schedule, contract price, and mutual obligations of the owner and contractor.

Construction Agreement

The primary legally enforceable contract between the owner and contractor that establishes the contractual relationship, identifying the parties, contract price, duration, and core responsibilities.

Drawings (Plans)

The graphical representations prepared by architects and engineers showing dimensions, layout, materials, and construction details needed to build the project accurately.

Technical Specifications

Written documents accompanying the drawings that specify the required materials, workmanship standards, installation procedures, and testing requirements.

Bill of Quantities (BOQ)

A detailed itemized list of all work items and their estimated quantities, used during bidding, project costing, progress billings, and cost control.

General Conditions

Standard contractual provisions governing contract administration, including the duties of the owner, contractor, and architect, payment procedures, supervision, warranties, insurance, and dispute resolution.

Special Conditions

Project-specific contract provisions that modify or supplement the General Conditions to address unique requirements such as specific environmental factors, location details, or specialized methods.

Addenda

Written documents issued prior to the submission of bids to clarify, modify, or correct the original bidding documents.

Change Order

A formal written document issued after contract award authorizing an adjustment to the scope of work, contract price, or project duration.

Notice to Proceed (NTP)

A formal document issued by the owner authorizing the contractor to start construction and establishing the official commencement date for the project timeline.

Performance Bond

A financial and legal guarantee ensuring that the contractor will complete the project in accordance with the contract terms and conditions.

Payment Bond

A financial protection document that guarantees subcontractors, suppliers, and laborers will be paid for their supplied materials and completed labor.

Four Major Construction Project Constraints

The four interconnected parameters—Time, Cost, Quality, and Safety—that a construction manager must balance simultaneously to drive project performance.

Critical Path

The longest connected chain of sequential project activities that determines the overall minimum time required to complete the project.

Architect-of-Record

The registered and licensed architect professionally liable for the overall design and for signing and sealing the project's plans, specifications, and contract documents.

Architect-in-Charge of Construction

The registered and licensed architect directly responsible for supervising the day-to-day construction activities on the site.

Construction Supervision Group (CSG)

The team acting as the owner's eyes and ears on the project site to inspect work, track quality control, evaluate issues, coordinate participants, and maintain daily records.

Major Project Participants Relationship

The simplified organizational structure defining interactions between the Owner, Construction Manager, Designer/Architect, Contractor, and the Construction Supervision Group/Site Inspectors.

Agency Construction Manager

A construction manager who acts strictly as an adviser and representative of the owner, bears lower construction risk, and generally does not hold direct contracts with trade contractors.

At-Risk Construction Manager

A construction manager who assumes greater contractual and construction risk and may hold direct subcontracts with specialty trade contractors.

Construction Management Cycle

A continuous leadership cycle executed by the Construction Manager consisting of six essential functions: Plan, Coordinate, Monitor, Control, Document, and Improve.

Republic Act No. 9184

The Government Procurement Reform Act of the Philippines that governs bidding, procurement, execution, and valid contract time extensions for public infrastructure projects.

Republic Act No. 11058

A Philippine law that, along with the Occupational Safety and Health Standards, mandates employers to ensure safe working conditions and provide personal protective equipment on construction sites.

Personal Protective Equipment (PPE)

Basic safety gear required on construction sites to protect workers from hazards, specifically including hard hats, safety vests, safety shoes, safety goggles, and gloves.

Daily Site Report

An organized site record maintained by the field supervision team detailing weather conditions, manpower count, equipment used, deliveries, work activities, visitors, instructions, and decisions.

Progress Payments

Periodic contract disbursements paid to the contractor based on verified percentages of completed and inspected work, supported by billing records and accomplishment reports.

Work Suspension

A temporary stoppage of site operations resulting from unsafe conditions, natural disasters, funding deficits, unresolved design issues, or pending disputes.

Contract Termination

The formal cancellation of a construction contract used as a last resort when a party commits a material breach, such as project abandonment, persistent poor workmanship, or unjustified delays.