Construction Estimates, Value Engineering, Methods, Operations, Contracts, and Specifications 4-6

Vocabulary flashcards covering construction cost estimates, value engineering phases, operational techniques, project contracts, Philippine arbitration laws, and technical specifications.

Construction Estimating

The process of predicting the cost of a construction project by assessing materials, labor, equipment, overhead, and profit.

Preliminary Estimate

A rough estimate used early in the project lifecycle to assess feasibility and budget requirements without detailed breakdowns.

Detailed Estimate

A comprehensive cost breakdown including materials, labor, and overhead, used when full information is available for accurate budgeting.

Quantity Estimate

An estimate based on material take-off from plans, focusing on the required amount of materials and associated costs for procurement and planning.

Bid Estimate

A highly accurate and detailed estimate prepared for competitive bidding situations to win contracts.

Control Estimate

An estimate used to monitor and manage costs during construction by tracking actual costs against initial estimates.

Direct Costs

Expenditures directly linked to the physical creation of the building itself, consisting of tangible and quantifiable expenses like materials, labor, and equipment.

Indirect Costs

Expenses that support a construction project but are not directly tied to the physical building process, such as overhead, contingencies, profit, and taxes.

Material Waste Allowance Limit

An estimate allowance for material waste and/or losses that shall not exceed $5\%$ of the total materials requirement.

Equipment Mobilization and Demobilization Limit

A direct equipment cost allocation that shall not exceed $1\%$ of the Estimated Direct Cost (EDC) of civil works items.

Overhead Expenses Range

Indirect expenses covering supervision, office expenses, insurance, and financing costs, ranging from $7\%$ to $11\%$ of the EDC.

Contingencies Range

An indirect cost allocation ranging from $0.5\%$ to $3\%$ of the EDC.

Miscellaneous Expenses Range

An indirect cost category ranging from $0.5\%$ to $1\%$ of the EDC.

Contractor's Profit Rate

An indirect cost set at $8\%$ of the EDC for projects above $\text{₱5 Million}$ and $10\%$ of the EDC for projects $\text{₱5 Million}$ and below.

Value Engineering (VE)

A systematic approach used to optimize project function, cost, and quality to achieve required functions at the lowest life-cycle cost without compromising performance.

Function Analysis System Technique (FAST)

A tool used during the Function Analysis Phase of Value Engineering to define and classify project functions.

Information Phase

The first phase of the Value Engineering Job Plan, focused on collecting project scope, objective, and cost data to identify high-cost areas.

Function Analysis Phase

The VE Job Plan phase dedicated to defining and classifying project functions using techniques like FAST.

Creative Phase

The VE Job Plan phase where alternative solutions and ideas are generated to perform project functions more efficiently.

Evaluation Phase

The VE Job Plan phase where generated alternatives are assessed for feasibility, cost, and overall project impact.

Development Phase

The VE Job Plan phase where the most promising alternative ideas are turned into workable construction solutions.

Presentation Phase

The final VE Job Plan phase where recommendations are presented to stakeholders for approval and implementation.

Construction Methods

The specific planned techniques and processes used to assemble structures, categorized by structure type, materials, or technology.

Construction Operations

The actual processes and activity sequences involved in executing physical construction work.

Traditional Construction Methods

Foundational building techniques relying on manual labor and conventional materials such as brick, wood, stone, and concrete.

Masonry Construction

A traditional building technique using bricks, stones, or concrete blocks bonded together with mortar.

Modern Methods of Construction (MMC)

Innovative building techniques integrating advanced materials, prefabrication, and digital technology to enhance speed and precision.

Structural Insulated Panels (SIPs)

Prefabricated building panels made of insulation sandwiched between structural facing boards.

Slipform Construction

A continuous concrete pouring method utilizing moving formwork, commonly used for tall structures like silos and chimneys.

Lift-Slab Construction

A specialized technique where concrete floor slabs are cast on the ground and subsequently lifted into position along columns.

Tunnel Boring Method (TBM)

A specialized underground excavation method using TBM machinery that minimizes surface disruption.

Top-Down Construction

A specialized technique where underground basement floors are constructed downward while upper structural levels are built upward simultaneously.

Construction Contract

A legally binding set of documents between a contractor and owner detailing cost, schedule, scope, tasks, and dispute resolution.

Scope of Work

A detailed contract element outlining specific tasks, deliverables, and timelines, clarifying what work is included and excluded.

Change Order

A formal written amendment modifying original contract terms, scope, schedule, or cost due to design changes or unforeseen site conditions.

Termination Clause

A contractual provision outlining conditions for ending an agreement, such as breach of contract, non-payment, convenience, or force majeure.

Construction Industry Arbitration Commission (CIAC)

The designated arbitration body in the Philippines with exclusive jurisdiction over construction disputes agreed to be resolved via arbitration.

Republic Act No. 876

The Philippine Construction Industry Arbitration Law supporting arbitration as a legal means to resolve construction disputes.

Alternative Dispute Resolution Act of 2004 (R.A. 9285)

The Philippine legal framework requiring Regional Trial Courts to dismiss and refer construction cases to CIAC if an arbitration agreement exists.

Executive Order No. 1008

An executive order in the Philippines specifically addressing construction disputes and reinforcing CIAC authority.

Cost-Plus Contract

A contract where the contractor is reimbursed for all construction-related direct and overhead expenses plus an agreed-upon profit fee.

Design-Build Contract

A contract combining design and construction under one agreement, allowing construction to begin before final design completion.

Guaranteed Maximum Price (GMP) Contract

A contract setting a upper ceiling on the amount an owner pays, making the contractor responsible for any additional cost overruns.

Incentive Construction Contract

A contract granting extra financial compensation to the contractor for delivering a project early or under budget.

Integrated Project Delivery (IPD) Contract

A multi-party contract between owner, design firm, and builder utilizing a shared risk/reward structure and lean principles.

Lump-Sum Contract

A contract where the contractor agrees to complete and deliver the entire project for a single preset price.

Time and Materials (T&M) Contract

A flexible contract where the owner pays based on actual time spent, material costs, and an agreed profit rate.

Unit Price Contract

A contract detailing set prices per unit of work, where total owner payment depends on actual measured unit quantities.

Construction Specifications

Detailed written instructions specifying materials, standards, workmanship, and installation procedures required for a construction project.

Descriptive Specifications

Specifications detailing the exact physical characteristics and technical properties of materials and workmanship.

Performance Specifications

Specifications specifying required end results or operational performance criteria rather than specific materials or methods.

Proprietary Specifications

Specifications mandating the use of exact brand names, manufacturers, or proprietary products.

Reference Specifications

Specifications that incorporate external industry standards, codes, or published testing criteria.