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Lesson 1-6
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Construction Project
It is a series of interrelated construction tasks which are undertaken in a systematic order over a temporary time frame and result in a tangible product or outcome. The product can be anything from a house, to bridge or renovation of an existing building.
Types of Construction Projects
Residential
Renovation
Fit-out
Commercial
Industrial
Roadworks
Bridges
Mid-rise & High-rise Buildings
Institutional
Railway Engineering
Ports, Harbors & Coastal Engineering
Transportation Facilities
Dams
Green Building
Special Facility Structures
Construction contract
A _ is a legally binding set of documents typically between a contractor who is taking on the work and the owner who is requiring the work.
Construction contracts
_ are comprehensive covering everything including cost and payment terms, schedule, scope, specific tasks to be performed, and any other contract terms required by one of the two parties. The contract also notes how any disputes should be handled.
Elements of Construction Contract
Scope of Work
Project Timeline
Payment Terms
Project Milestones
Change Orders
Termination Clause
Warranties and Liabilities
Dispute Resolution Methods
SCOPE OF WORKS
Outlines the specific tasks, deliverables, and timeline for a project, acting as a detailed blueprint for project execution. It clarifies what work is included and excluded from the project.
PROJECT TIMELINE
Visual representation of a project's schedule, showing the sequence and duration of task.
PAYMENT TERMS
it defines how and when a contractor is paid for their work, ensuring fair & timely compensation.
PROJECT MILESTONES
are specific significant events or accomplishments that mark the progress and achievements in project.
CHANGE ORDER
It is a formal written amendment to a construction contract that modifies the original terms and condition. It is used to document and approve alterations to the project's scope, schedule or cost, typically arising from the design changes, unforeseen site conditions or owner requests.
TERMINATION CLAUSE
is a contractual provision that outlines the conditions and procedures for ending a contract agreement. It specifies the circumstances which the contract can be terminated
Breach of Contract
A termination clause that covers Failure to fulfill obligations
Non-payment
A termination clause that covers Failure to make payments
Convenience
A termination clause that covers Termination without cause
Force majeure
A termination clause that covers Unforeseen events beyond control
WARRANTIES & LIABILTIES
A contractual agreement guaranteeing that the contractor will repair or replace defective workmanship or materials for a specific period after completion.
DISPUTE RESOLUTION METHODS
process used to resolve conflicts or disagreements between parties
Negotiation, Mediation, Arbitration, Litigation
DISPUTE RESOLUTIONS METHODS
NEGOTIATION
Direct communication to reach a mutually acceptable agreement.
MEDIATION
A neutral third-party facilitates a discussion to reach a resolution
ARBITRATION
A neutral third-party makes a binding decision
LITIGATION
A court-based process where a judge or jury makes a decision
Construction Industry Arbitration Commission (CIAC)
In the Philippines, construction disputes are primarily resolved through arbitration, with the _ holding exclusive jurisdiction. ’s jurisdiction is triggered when parties agree to resolve disputes via arbitration, whether through a contract clause or a separate arbitration agreement
The Philippine Construction Industry Arbitration Law (Republic Act No. 876)
___ supports arbitration as a means of resolving construction disputes
The Alternative Dispute Resolution Act of 2004 (R.A. 9285)
provides the legal framework for this, requiring Regional Trial Courts to dismiss cases and refer them to CIAC if the patties have agreed to arbitration. This law sets the stage for ADR in the Philippines, including arbitration.
Executive Order No. 1008
This order specifically addresses construction disputes and reinforces CIAC's authority.
Regional Trial Courts
If a construction dispute is filed in a and the court later learns of an arbitration agreement, the court must dismiss the case and refer it to CIAC
Arbitration Agreement
Parties must have a valid arbitration agreement, either in the construction contract or as a separate document, to trigger CIAC's jurisdiction.
CIAC Rules
The CIAC follows its own set of rules for conducting arbitrations, which are usually outlined in the contract or a separate agreement.
Arbitration Award
The CIAC renders an award, which is legally binding and enforceable
Construction Project Management (CPM)
is the overall planning, coordination, and control of a construction project from beginning to completion.
Construction Project Management (CPM)
Its purpose is to meet client requirements and produce a functionally and financially viable project that is delivered on time, within budget, and to the required quality standards.
• Multiple phases
• Diverse stakeholders
• Strict regulations, budgets, and timelines
Construction projects are complex and involve:
• Efficient use of resources
• Minimization of delays and COSt overruns
• Improved quality, safety, and communication
Effective management ensures:
Time Management, Cost Control, Quality Assurance, Risk Management, Scope Management, Communication Management
Key Objectives ot CPM
Time Management
Ensuring the project is completed on schedule.
Cost Control
Keeping the project Within the budget.
Quality Assurance
Ensuring the project meets required standards,
Risk Management
Identifying and mitigating potential issues.
Scope Management
Preventing scope creep and managing changes.
Communication Management
Coordinating among various stakeholders.
Traditional Construction, Modular Construction, Sustainable Construction
Construction Methods
Traditional Construction
Involves standard practices such as masonry, wood framing, and concrete pouring.
Modular Construction
Prefabricated sections are built off-site and assembled on-site, reducing construction time and waste.
Sustainable Construction
Focuses on environmentally friendly practices, using sustainable materials and energy-efficient designs.
Initiation, Planning and Design, Execution, Monitoring and Controlling, Closure
Major Phases of a Construction Project
Initiation
Project idea, feasibility analysis, and defining objectives.
Planning & Design
Developing blueprints, scheduling, budgeting, and defining the project scope.
Execution (Construction)
Physical construction activities begin. Coordination among contractors, subcontractors, and workers is key.
Monitoring and Controlling
Tracking progress, managing changes, ensuring quality and safety.
Closure
Project handover, final inspections, documentation, and client approval.
Client / Owner, Architects / Engineers, Contractors / Subcontractors, Suppliers / Vendors, Government / Regulatory Bodies, Other Interested Parties
Key Stakeholders in Construction Project Management
• Gantt Charts and Schedules
• Critical Path Method (CPM)
• Work Breakdown Structure (WBS)
• Earned Value Management (EVM)
• Project Management Software (e.g.,
MS Project, Primavera, Procore)
• BIM (Building Information Modeling)
Common Tools & Techniques in CPM
Minimizes risks and delays
Optimizes resource utilization
Enhances communication and collaboration
Ensures compliance with codes and regulations
Delivers quality results to stakeholders
Benefits of Effective Construction Project Management
• Unexpected delays and cost overruns
• Labor shortages or disputes
• Weather-related disruptions
• Regulatory hurdles
• Poor communication among stakeholders
Challenges in Construction Project Management
Construction Project Management
is essential to deliver safe, timely, and cost-effective projects. It involves collaboration, planning, and constant oversight.
Project Manager
A good _ drives success by balancing scope, time, and cost.
CONSTRUCTION PROJECT ORGANIZATION
It refers to the structured framework
used to manage people, processes, and resources involved in a construction project
CONSTRUCTION PROJECT ORGANIZATION
It defines roles, responsibilities, and
communication flow to ensure that the project is executed efficiently, safely, on time, and within budget.
Clear accountability
Improved communication
Efficient workflow
Risk management
Better resource allocation.
IMPORTANCE OF AN EFFECTIVE ORGANIZATIONAL STRUCTURE
Owner / Client
Architects & Engineers
Contractor
MAIN PROJECT PARTICIPANTS
OWNER/CLIENT
They are the project initiator and typically define the project scope, objectives, and budget. They are responsible for providing project funding, setting project goals, and approving major project decisions.
ENGINEERS
• With specialized expertise in various fields, these individuals deal with civil, structural, mechanical, and electrical engineering.
ENGINEERS
• They are responsible for designing systems and structures that meet safety standards and project specifications. __ collaborate with architects to integrate technical aspects into the design.
ARCHITECTS
_ and designers are responsible for creating the project's design and plans, which ensure everything aligns with the client's vision and complies with local building codes.
ARCHITECTS
They are also responsible for coordinating with other design professionals and preparing construction documents.
CONTRACTOR
is responsible for taking the owner's vision and the architect's plans to turn them into reality. They bring together the resources, manage the work, and ensure the project is completed as it should be.
PROJECT TEAM
This includes project managers, engineers, architects, and other team members directly involved in the project's execution.
Project Manager (PM), Construction Manager, Planning/scheduling Engineer, Quality Assurance/control (QAIQC),Safety Officer, Administrative Officer, Site Engineers, Site Supervisor or Foreman
PROJECT TEAM
Project Manager (PM)
Oversees planning, execution, and delivery; manages budget, schedule, risks, and team coordination
Construction Manager
Directs site operations, coordinates trades and subcontractors, ensures daily progress.
Planning/scheduling Engineer
Develops project schedule, monitors progress, updates timelines, reports delays.
Quality Assurance/control (QAIQC) Manager
Ensures construction meets design specs and standards, manages inspections and testing.
Safety Officer
Implements safety plans, conducts toolbox meetings, ensures regulatory compliance.
Administrative Officer
Handles permits, contracts, payroll, document control, and communication logs.
Site Engineers
Execute technical details on site, interpret drawings, supervise foremen.
Site Supervisor or Foreman
Lead laborers, supervise daily tasks, ensure safety and productivity on the ground.
BEST PRACTICES
• Clearly define roles and
communication lines.
• Use a RACI Matrix (Responsible, Accountable, Consulted, Informed).
• Hold regular coordination meetings.
• Implement digital project management tools for efficiency.
• Conduct training for team development and compliance.
Success
A well-defined organizational structure in construction project management is critical to a project's .
Regulatory Bodies
Government agencies and regulatory authorities that ensure the project complies with legal and safety standards. | Other Interested Parties
Local Communities
Residents and businesses in the vicinity of the construction site who may be affected by the project. | Other Interested Parties
Investors and Financiers
Parties providing financial backing for the project, interested in its economic viability and return on investment. | Other Interested Parties
Environmental Groups
Organizations concerned with the environmental impact of the project. | Other Interested Parties
Construction Project Cycle
Refers to the series of phases that a construction project passes through, from initial conception to completion and handover. Understanding this cycle in depth helps ensure successful project management, effective resource utilization, and timely delivery.
Construction Project Cycle
Initiation and Feasibility Study
Planning and Design
Pre-Construction
Construction/Execution
Commissioning and Handover
Operation and Maintenance
Close-out and Evaluation
Initiation and Feasibility Study
Objective:
Activities:
Outcome:
Planning and Design
Objective:
Activities:
Outcome:
Pre-Construction
Objective:
Activities:
Outcome:
Construction / Execution
Objective:
Activities:
Outcome:
Commissioning and Handover
Objective:
Activities:
Outcome:
Operation and Maintenance
Objective:
Activities:
Outcome:
Close-out & Evaluation
Objective:
Activities:
Outcome:
Construction Project Cycle
The _ is a structured sequence that ensures projects are delivered efficiently, within scope, time, and budget.
risks, improves communication, leads to successful project completion
Proper management of each phase reduces ____ , _____, and ______