Construction Project Management

Flashcards on construction project management, covering topics such as budgeting, cash flow, forecasting, risk management, quality control, contracts, and project stages.

Budget

Preliminary budget created at tender stage to give a reasonable idea of what the project might cost; a more formalized budget is created once a tender is won.

Budget components

Preliminaries, trades, margins, and contingency.

Cashflow

Money coming into a business (income) minus expenditure; it is not a budget.

Control cash flow

Neutral to positive to minimise debt over the project lifetime.

Bromilow s-curve model

Predictive model for forward planning for large construction projects time/cost estimation.

Forecasting

Calculation of expected future expenditure; a scientific process that is also subjective and undertaken frequently on a project (monthly).

Risk and opportunity

Risk is the project going over budget and opportunity improve the bottom line.

Forms of contract

Residential contracts, Cost plus contracts ,Lump sum contracts and Guaranteed maximum price (GMP) contracts

WBS (work breakdown structure)

Breaking the work in a project into smaller manageable tasks, assigning time, budget, and resources to tasks.

Planned cost

An estimation of what the project or component will cost, to be paid to the contractor by the owner of the project.

Actual cost

Actual money needed to complete the project/task; what is actually spent, calculated after project completion.

Budget

Based on the planned cost of the project or a component from execution to completion, normally paid periodically.

Cashflow

The difference between the budget and the cost, whether negative or positive.

Quality

One of the triple constraints; requirements vary between projects but must meet the client’s needs.

How is quality measured

With an Inspection and Test Plan (ITP).

Using a quality system

Reviews, Audits, Non-conformances, Rectification and rework, Timeliness, Re-testing and Continuous monitoring.

National Construction Code (NCC)

Australia’s primary set of technical design and construction provisions for buildings, setting minimum required levels for safety, health, amenity, accessibility, and sustainability.

BII

Building indemnity insurance for small projects with little players involved

Bank guarantees

A commitment provided by a bank or financial institution to ensure that the project owner is compensated if the contractor fails to fulfill their contractual obligations.

Performance guarantee

Ensures the contractor completes the work specified in the contract

Advance payment guarantee

Ensures that any advance payments made by the owner is used appropriately for the project development

Maintenance guarantee

Ensures that the contractor addresses any defects that may occur after the project is completed, within a specified period.

Release

A specific stage where the guarantee is released upon practical completion or at the end of the defects liability period.

Retention money

A portion of the payment withheld from the contractor during the payment process, held back at a set percentage to ensure completion of all necessary work and maintained quality.

Risk management

Essential to prevent costly disruptions and ensure efficient resource allocation; involves identifying, evaluating, prioritizing, and mitigating risks.

Value management

Focuses on optimizing project outcomes by balancing cost, quality, and functionality, ensuring that every decision adds value and maximizes stakeholder satisfaction.

Value analysis

Select options that provide the best value.

Value engineering

Review design and execution strategies to optimize cost.

Cost benefit analysis

Evaluate the cost implications of different design and construction choices against their expected benefits.

The main aim of construction project quality management

The main goal is to satisfy client requirements and ensure safety standards during and after construction.

Requests for Information (RFIs)

Used to clarify design details that are not included in the original documentation.

Variations

Can occur due to RFIs, client requests , latent conditions, etc.

Progress claims

Used to avoid disputes over payments.

Effective cost control

Involves managing cash flow, with a cash flow forecast established during the planning stage and adjusted throughout the project.

Operation and Maintenance Manuals

Provide instructions for the operation and maintenance of the project, handed over to the client and end users.

Practical completion

Achieved when the works can be used for their intended purpose, including passing required testing.

Defects liability period (DLP)

After practical completion. Any defects must be rectified.