CONSTRUCTION CONTRACTS

COST ESTIMATE AND

SPECIFICATIONS

Robert L. Peurifoy
Garlod D. Obrelender
2010

Nabil Dmaidi 1
 Prepared
by
Nabil Al-Dmaidi

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[Chapter One]
Introduction

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CHANGING PROJECT
DELIVERY SYSTEMS
by
Nabil Dmaidi
Civil Engineering Department
An-Najah National university

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Traditional Method (Design_then _Build)
 Also known as Design_Bid_Build or hard
money or Competitive bid contract.
 Has three sequential phases
Design - Bid - Construction
Architect-
Engineer
hired

Design Phase Bid/Award Construction Phase

Single Construction
Contract
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Traditional Organization of Construction

A/E design consultant

Build the project on paper A/E general supervision
Specialist
and Owner user
consultants Contractor
Industry
Engineering participation
Feasibility and design Contract bidding Construction Use of facility

documents Planning, engineering, and

management

In-house Contract design and Single bid Contract construction

and supervision package
consulting
services

Project Call Bid Project

approval for bids acceptance completion
and and notice to and acceptance
selection
proceed
of A/E

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 Traditional Organization

Owner

A/E

General Contractor

Sub Sub Sub Sub Sub

Contractor Contractor Contractor Contractor Contractor

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Estimating Needs for Design-Bid-Build

 Complete set of drawings

 Specification
 Other contract documents
– General conditions
– Special conditions
– Addenda
 Others (soil report)

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Hierarchy of Contract Document

Addenda

Special Conditions

General Conditions

Specification

Drawing

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Fast Track or Phased Construction Method

Concepts Working Drawing

Design Phase

CM and A/E
or Construction Phase
DB hired
Variable separate construction contracts

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Level of Influence

Project Cost
Influence

Time

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1. Design Build
Owner

Engineer
Contractor

General
Design
Contractor

Own
Sub-Contractor
Force Work

 Single firm responsible for both design and construction.

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Form of Design_Build Organization
Owner Owner Owner Owner

Design-Builder Design-Builder Design-Builder Design-Builder

(Architect/Engineer) (Contractor) (Joint Venture) (DB Firm)

Contractor Architect/
Engineer

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Advantages of Design & Build for Owners

 Owner only has to communicate with one entity

 Total project duration can be reduced.
 Integration of construction planning and design phases
 Claims reduction .
 Innovation in design and construction can be
encouraged
 Risk assigned to party best able to manage that risk
 Reduce change orders

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Disadvantages of DB for Owners
 Fewer checks and balances, owner must
rely on integrity of the design-build firm
 Reduced owner involvement in the design
process may result in less than expected
results
 All your eggs in one basket

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Advantages to a design-build organization

 Improved constructability
 A specialized organization can be developed
 Reduction of negligence claims between the
Architect/Engineer and the construction contractor since
they are under one umbrella firm
 Ability to react rapidly to change in scope

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Disadvantages for the design-build firm

 Acceptance of additional project risk

 Possible premature release of bid packages (when
using fast track) which can lead to increased errors
in the plans and extras
 Scope of work changes can be difficult to identify
under DB/ fast track construction
 Heavy overhead due to large multi-disciplined
staff requirements

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2. Engineer/Procure/Construct (EPC)
Pure CM
Owner
In-House Design
or Eng.. Firm CM

Specialty Specialty Specialty Specialty

Contractors Contractors Contractors Contractors
and Vendor and Vendor and Vendor and Vendor

EPC Model #1
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 Cost Saving due to Competitive Bidding
120,000 100,000
105,000 Bid Pkg 100,000
1
$ 95,000
95,000

195,000
200,000 Bid Pkg
2
210,000 $ 195,000
202,000 215,000

220,000 225,000
Best Bid Pkg Best
Bids 3 Bids
235,000 $ 220,000 230,000
Received 240,000
Received

325,000 Bid Pkg 350,000

200,000
220,000

90,000
95,000

230,000
325,000

200,000
325,00
0
4
360,000 $ 320,000 320,000
325,000

General General
Contractor 1 Total Project Contractor 2
$ 840,000 Cost $ 845,000
Saves $ 825,000
$15,000
By soliciting more bids and by passing the savings directly to the owner, the owner saves
$15,000 compared to the best general contractor price. This example illustrates four bid
packages. Typical commercial building projects may have thirty or more bid packages.
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2. Engineer/Procure/Construct (EPC) (cont.)
General Contractor acting as CM
Owner
Engineer/Procure
Construct

Specialty Specialty Specialty Specialty

Contractors Contractors Contractors Contractors
and Vendor and Vendor and Vendor and Vendor

EPC Model #2
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Other Models of
Single Source Delivery Systems
 A/E acting as CM
Owner

A/E and
CM

Prime Contractor

EPC Model #3
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Other Models of
Single Source Delivery Systems (cont.)

 CM acting as Contractor

Owner

A/E CM

Prime Contractors Contractor

EPC Model #4
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Others
Owner CM Owner

A/E
Design Construction
Department Department Prime Contractors

Optional Own
Contractors Subs
Force Work

Owner Builder Owner C.M.

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Estimating Needs for Single Source Delivery
 Conceptual Design
 Assemblies cost data
 Update your estimate as the design develops
 Value engineering studies

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Design-Build Issues
1.Prequalification
– The reduction of the number of possible bidders
to a small group of serious, qualified bidders
improves the effectiveness of the selection
process.

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Design-Build Issues (cont.)

2. Proposal Evaluation
– Cost only
– Cost and time
– Multiparameter (quality, safety…etc.)

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Innovative Contracting Methods

 Multiparameter Bidding (A+B+C)

Multiparameter bidding is a bidding system
within the competitive bidding concept where a
successful bidder is selected based on the
combined cost, time and quality.

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Example of Multi-parameter Bidding

"A" "B"
Bid Facility User
Cost @ $
Contract "A+B"
4000 per
Traditional Time Contract Cum ulativ e
Contractor Bid Price (Days) Day Bid
(1) (2) (3) (4) (5)
1 $3,262,724 170 $680,000 $3,942,724
2 $3,015,868 140 $560,000 $3,611,868
3 $3,231,006 95 $380,000 $3,611,006

Lowest Cumulative Bid Cost

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Design-Build Issues (cont.)
3.Legal
a. Insurance and Bonding
 The contractor should have the proper insurance to
cover design deficiencies or cover construction
errors.

b.Conflict of Interest
 Design-build eliminates the checks and balances of
the traditional methods.

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Innovative Contracting Methods (cont.)
 Construction Warranties (DBW)
A warranty is a guarantee of the integrity of a
project and of the maker responsibility for the
replacement or repair of deficiencies for a period
longer than the traditional 1-year warranty.
– It is different than project maintenance
warranties that provide routine maintenance

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 Estimating is not an Exact Science.
It is a group of :
*Skills and experiences
* knowledge of construction
* knowledge of prices curry
*Common sense
*The judgment required

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 Estimating material costs can be
accomplished with a relatively high degree
of accuracy.

 Accurate estimating of labor and

equipment cost is considerably more
difficult to accomplish.
accomplish.

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 But

 The quantity of materials for a particular job can

be accurately calculated from the dimensions on
the drawings for that particular job.

 After the quantity of material is calculated , the

estimator can obtain current unit prices from the
supplier and then multiply the quantity of material
by the current unit price to estimate the cost of
materials.

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 Importance of the Estimator and
the Estimating Team

 Whether using computer or not.

 The estimator and his or her team play

a vital role in preparing estimates .

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 Information must be :

Assembled , organized , and stored.

Cost records from previously completed projects and

cost quotes from suppliers , vendors , and subcontractors
must be gathered .

Assessment of job conditions and evaluation labor and

equipment and productivity rates must be performed.

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 Note:
 The estimator must also document the estimate
so to be used for cost control during the
construction process.

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 Purpose of estimating :

1.T o determine the forecast costs required to complete a project

in accordance with the contract plans and specifications .

2. Determining the probable real cost and determining

the probable real time to build a project.

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 Types of estimate :

1. Approximate Estimate

2. Detailed Estimates

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 Organization of Estimates :

 Two basic approaches have evolved to

organize work items for estimating :

One approach is to identify work by the

categories contained in the projects written
specifications. (such as CSI of building
construction project ).

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The other approach uses a work break down
structure (WBS) to identify work items by their
location on the project .

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Quantity takeoff

 1- Calculate the quantity of material and

record the amount and unit of measure on the
appropriate line item in the estimate.

 2- Each estimator must develop a system of

quantity takeoff that ensure that the quantity
is not omitted or calculated twice

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 3- Will organized and careful check will
reduce the chance of omitted an items and
detect those items that counted twice

 4- Adding appropriate percentage of waste

must be done for items that may be waste
during construction

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Labor and equipment crews

 To estimate the quantity take off an assessment

of how the project will be constructed must be
made.

 The assessment should include an analysis of

the job conditions , labor and equipments
crews.

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Checklist of operation :

 Checklist include all operations necessary to

construct the project

 Check must be done to ensure that no

operations have been omitted

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Material taxes
 The taxes rate for materials will vary
depending on the location.

 Generally the tax on materials will range from

3 to 6 percent.

 The estimator should include the appropriate

amount of tax in the summary of the estimate.

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Representative Estimates

– Direct cost : labor, material, equipment

– Indirect cost: overhead, profit

 Estimating is not exact science, it depends

upon experience, judgment, and care

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Production rates

 Is the number of units of work produced by

a unit of equipment or a person in a
specified unit of time (usually one hour).

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Tables of production rates

 When preparing an estimate for a project, if

access is available to production rates
obtained from actual jobs constructed under
similar conditions, the estimator should use
them instead of the general tables.

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[Chapter Two]
Bid Documents

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BID DOCUMENTS AND CONTRACT DOCUMENTS
• The difference between bid and contract documents.

 The bid document applies to before the contract is

signed, whereas the contract document applies to after
the contract agreement is signed by the owner and
contractor .
*The bid documents consist of :
- The invitation to bid .
- Bid forms.
- Drawings.
- Specifications.
- Requirements of bonds and insurance.
- Addenda.

Bid Documents
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50
* Why we need the bid documents?
The contractor used it in prepare an estimate
and submit a bid.

- It’s legal documents for construction and

completion of the project.

* Who writes the bid documents?

Architect Engineer.
Bid Documents
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51
 Contract Requirements:

1) Competitive contract.
2) Negotiated contract

In most municipal, state, and federal projects are awarded by

competitive bidding.

-- Competitive bidding involves :

_ Advertisement for bids in public media.
_ Bid opening is performed in the open public.
_ Contractor performs a detailed estimate and submits a bid
price accordance with the contract documents.

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52
_ The owner and engineer perform the evaluation of bids at
later date.
_ Most governments award contract to the lowest bidder,
provided all conditions of the contract have been met.

_ Private owners are not required to award the contract to the

lowest bidder but may select to the contractor deemed
most desirable for the project.

-- Negotiated contracts : Awarding of the contract is made

to the contractor who the owner feels can provide the best
total performance . This bid may or may not be lowest
initial cost.
Bid Documents
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 Arrangement of contract documents:

1- Legal matters:
- Bid forms.
- Bond requirements.
- Insurance requirements.
- General condition.
- Supplementary conditions of the contract.
2) Technical matters :

- Plans (drawings).
- Specifications that describe the material,
workmanship, and methods of construction
that are required to build the project.

* Where conflicts exist between the drawings

and written specifications, it is common
practice that the written specifications govern.

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 Building Construction Specifications:

It’s defined :
1) The quality of material.
2) Performance rating of equipment.
3) Level of workmanship.
4) Warranty requirements.
 Construction Specification Institute (CSI)
Master format organizes project information
into major divisions.

Bid Documents
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56
A list of the CSI numbers and titles includes:

0-Introductory Information Bidding and

Contracting Requirements.
1-General Requirements.
2-Site Construction.
3-Concrete.
4-Masonry.
5-Metals.
6-Wood and Plastics.
7-Thermal and Moisture Protection.
8-Doors and Windows………………
Bid Documents
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57
 Heavy/Highway Specifications:

1-General Provisions.
2-Excavation and Embankment.
3-Base Courses.
4-Surfaces Courses: bituminous, concrete pave’s.
5-Structures:steel,concrete bridges.
6-Materials:aggregate,asphalt.
7-Traffic Control: signals, signs.
8-Incidental Construction: guard rails, fences.
Bid Documents
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Bidding requirements
 The information contained in this section
of the contract documents is extremely
important to the estimating team . typical
information in the bidding requirements
includes:

Bid Documents
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Bid solicitation
 The bidding solicitation some times called the
invitation to bid contain the time that bids
must be submitted . the estimator must
establish a plan to complete all work to meet
the deadline of the bid date , other wise the bid
will be disqualified. The bid solicitation also
gives the name and address of the owner and
design organization with instructions on how
to obtain the bid documents.

Bid Documents
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Instruction to bidders
 The instruction to bidders section describes vital
information that is required to submit a bid. For
example that may appear in the instruction to is a
statement that the contractor must make a
provision during execution of the contract
document to allow the owner to take advantage of
the owner's contract documents to allow the owner
to take advantage of the owner's tax exempt status
for materials and equipment purchased for the
project.

Bid Documents
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Information Available to Bidders

 The information available to bidders section

may include such items as referencing a
subsurface exploration report that has been
prepared for the project , but is not shown in
contract documents . the information
available to bidders may include
information about the project from a
material testing laboratory .

Bid Documents
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Bid forms
 The bid form defines the format that is required
for submission of the bid.
The format of the bid form impacts the assembly
and summary of costs in the final estimate . the
owner may request the bid as lump sum, unit
prices based on predefined pay quantities in the
bid documents , or combination of both.

Bid Documents
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 For construction project the work may
priced by several method or combination of
the pricing method. The method selected
depends on distribution of risk between the
owner and contractors.

Bid Documents
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Types of Contract
 Single fixed cost or Lump-sum
 Negotiated Cost-plus-a-fee contract
 Guaranteed maximum price

DR. Nabil Dmaidi

Single Fixed Cost or Lump-sum
 Contractor agrees to perform the work for a
predetermined price that includes profit.
 Same as unit price contract

DR. Nabil Dmaidi

YPES OF ONTRACT

DR. Nabil Dmaidi

Advantages of
Fixed Cost Contract
 Historically supported with well-established legal
and contractual procedures.
 Overall cost is predetermined.
 Minimal involvement by the owner.
 Owner may benefit from price competition.
 Incentive for contractors to reduce costs.

DR. Nabil Dmaidi

Disadvantages of
Fixed Cost Contract
 Long procedure
 The owner and designer is in adversarial
position with the general contractor
 Does not benefit from highly qualified
contractor on technological advancements
 Pass much of the risk to the contractor

DR. Nabil Dmaidi

Negotiated Cost-Plus-A-Fee
Contract
 Contractor agrees to perform the work for a
fixed or variable fee to cover overhead cost
and profit.
 Fee can be flat dollar sum or % of cost
estimate.
 Incentive fees are now increasingly popular.

DR. Nabil Dmaidi

Advantages of
Negotiated Cost-Plus-A-Fee Contract
1.Minimal adversarial position
2.Preferred for unknown technology
3.No official change order procedure

DR. Nabil Dmaidi

Disadvantages of
Negotiated Cost-Plus-A-Fee Contract
1.May not be the most economical price
2.System can be abused
3.Owner or designer involvement are
increased
4.Additional administrative cost
5.No incentive for contractors to reduce cost
6.Pass the risk to the owner

DR. Nabil Dmaidi

Guaranteed Maximum Price
 The contractor agrees for a fixed fee and
profit at a cost not to exceed pre-established
max. price.
 Costs above the guarantee are absorbed by
the contractor.
 Savings may be reverted to the owner or in
most cases shared by the owner and the
contractor.

DR. Nabil Dmaidi

Advantages of
Guaranteed Maximum Price
1.Guarantee maximum price.
2.Owner may pass some of the risk to the
contractor.
3.Sharing the savings can reduce the cost.
4.Minimum owner involvement

DR. Nabil Dmaidi

Disadvantages of
Guaranteed Maximum Price
1.Generate disputes in case of poor initial
scope.
2.Change orders negate the advantage of
guarantee.

DR. Nabil Dmaidi

Lump-sum Contract
(Price is fixed at $10,300)

c
Final Price

$ 10,300
b
a

$ 9,500

$ 10,000

$ 10,500
Final Cost
a = If final cost is $9,500, contractor profit is $800 (8.42%)
b = If final cost is $10,000 (as expected), contractor profit is $300 (3%)
c = If final cost is $10,500, contractor loss is $200 (-1.9%)

DR. Nabil Dmaidi

Time-and-Materials Contract
(Price = cost plus
5%)
$ 11,025
c
Final Price

$ 10,500
b
$ 9,975
$ 9,500 a

$ 10,000

$ 10,500
Final Cost
a = If final cost is $9,500, contractor profit is $475 (5%)
b = If final cost is $10,000, contractor profit is $500 (5%)
c = If final cost is $10,500, contractor loss is $525 (5%)
DR. Nabil Dmaidi
Time-and-Materials Contract
(Price = cost of work plus fixed fee of $500 with a
maximum price of $10,500)
Final Price

$ 10,500 c
$ 10,000 b
a
$ 9,500

$ 10,000

$ 10,500
Final Cost
a = If final cost is $9,500, contractor profit is $500 (5.26%)
b = If final cost is $10,000, contractor profit is $500 (5%)
c = If final cost is $10,500, contractor loss is $0 (0%)
DR. Nabil Dmaidi
Degree of Risk for Owner and Contractor

Owner
RISK
RISK
RISK
RISK
RISK
RISK
RISK
Contractor RISK

Lump-sum Guaranteed Guaranteed

Contract
Contract Max Cost Max Cost
(many
Contract (Some changes) Unit Price Contract Contract Cost-Plus- Cost-Plus-
Contract (No Change Changes with with Fixed-Fee Percent-Fee
in Contract)
(or) Agreement
in Cost-plus Sharing Sharing Contract Contract
Contract) with Clause Clause
guaranteed
max cost
(50/50) (25/75)

DR. Nabil Dmaidi

 Hammunrabi
The building code of Hammurabi, founder of the
Babylonian empire, is the earliest known code of
law. Translated:
228: If a builder build a house for a man and
complete it, that man shall pay him two shekels of
silver per sar ( approximately 12 square feet) of
house as his wage.
229: If a builder has built a house for a man and if
the house he has built falls in and kills the
householder, that builder shall be slain.
230: If the child of the householder be killed, the
child of that builder shall be slain.
231: If the slave of the householder be killed, he
shall give slave for slave to the householder.
232: if goods have been destroyed; and because the
house was not made strong, and it has fallen in, he
shall restore the fallen house out of his own
material.
233: If a builder has built a house for a man, and
his work is not done properly and a wall shifts, then
that builder shall make that good with his own
silver.

DR. Nabil Dmaidi

Negotiated work
 It is used when the owner wants to start construction at
the earliest possible date to benefit from an early
completion and use of the project.

 A representative of the owner works with the contractor

to evaluate alternatives to obtain a project configuration
that meets the needs of the owner, yet with a cost within
the owner’s allowable budget.

 The final contract agreement usually is a cost plus a fixed

fee with a guaranteed maximum amount. If the cost is
above or below the guaranteed maximum amount, then
the owner and the contractor agree to a splitting of the
difference.
Bid Documents
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Addendum
 It is a change in the contract documents during
the bidding process, before a ward of the
contract.
 Addenda are issued to correct errors in the
contract documents or clarify an issue. May
concern addition to the work at the request of
the owner.
 The estimating team must be certain that the
costs of all addenda are included in the
estimate.
Bid Documents
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Alternate

 It is an addition or subtraction to a base bid

price for substitutions requested by the owner
during the bidding process.
 Each alternate is listed and numbered
separately in the bid documents.
 For example:
An alternate No.1 may be add the parking lot.
An alternate No.2 may be deduct the
sidewalks.
Bid Documents
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Change order

 It is issued by the designer but signed by the

owner and contractor

 Making a change in the contract documents

during construction.

 Upon approval by the owner change orders

become a part of the contract documents.

Bid Documents
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Warranties

 They are guarantees by the contractor that specific

components of the project will be free from defects
due to materials or workmanship for a specified
warranty period.
 They cover specific items, such as a roofing
warranty or an equipment warranty that are part of
the construction project.
 The type of warranty and warranty periods are
defined in the written specifications of the contract
documents.
Bid Documents
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 Bonds

 Bidders submit bonds as qualifications for

submitting a bid for a project.

 The contractor secures bonds from a bonding

company or a bank on behalf of the owner as
financial and legal protection for the owner.

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Type of bonds
Three type of bonds are commonly
required in construction contracts
(as the book):

1. Bid bond.
2. Performance bond.
3. Payment bond.
4. Maintenance Bond

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 If the contractor:
default,
or fails to complete the project,
or fails to pay labor and material cost
the bond company or the bank agrees to
fulfill the contract agreement.

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Insurance
 The contractor must secured insurance,
because there are many risks involved in
construction.
 The precise losses that are reimbursable from
insurance are based on predetermined losses
named in the insurance policy.

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 Types of Available Insurance for
Construction Projects

1. Basic Builder's Risk Insurance.

2. Public Liability and Property Damage
Insurance.
3. Workmen’s Compensation Insurance.
4. Contractor’s Equipment Floater.

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Basic Builder's Risk Insurance
 General Builder's Risk which covers damages to the
project due fires, wind, and hail.
 Insurance is based on the estimated completed value
of the project, so the premium rate usually is set at
60% of the complete value.
 Basic Builder's Risk Insurance varies with the type
and location of the structure.

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Public Liability and Property Damage
Insurance
 It protects the contractor against injuries to
the general public or public property due to
actions of the employees while performing
works.
 The cost of this insurance depends on the
type of work and the safety record of the
contractor.
 It is range from (2-8)% of the base cost of the
labor.
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Workmen’s Compensation Insurance

 To protect workers as a result of injury or

death on a project.
 It provides medical expenses and payment
of lost wages during the period of injury.
 The cost can rang from (10-30)% of the
base cost of the labor, depending on the
type of work that is performed by each
worker.

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Contractor’s Equipment Floater

 It provides protection against loss or

damages to equipment because of fire,
tornado, flood, perils of transportation, and
theft.
 The cost varies with location, it is about
$1.50 per $100.00 of equipment value per
year.

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Work Breakdown
Structure WBS

DR. Nabil Dmaidi

Work Breakdown Structure (WBS)
 A hierarchical system which sub-divides
larger elements of the project into smaller
elements.
 The smallest unit of the WBS is the work
package.

DR. Nabil Dmaidi

Work Breakdown Structure Example
Level
Level Work Breakdown Structure
Description

1
Warehouse
Total Project

2 Steel
Mobilization/ Masonry Roof
Administration Columns
Subprojec Demobilization Wall & Joints System

t
3 Steel
Floor Masonry Roof Interior
Category of Sitework Footing Columns
Slab Wall & Joints System Finishes
Work

4 Form &
Excavate Place
Work Footings
Reinforce
Footings
Footings
Package
5
Labor Material Equipment
Resources
DR. Nabil Dmaidi
WORK BREAKDOWN STRUCTURE (cont.)

 The scope of work in each work package should be

defined to avoid overlaps and omissions between work
packages.
 Work packages should be defined in terms of design,
construction methods, and completion requirements, with
associated performance dates

DR. Nabil Dmaidi

Scope of Work Packages
Each work packages should be:
1. Manageable
– Specific authority and responsibility can be assigned.
2. Independent
– With minimum interfacing or dependence on other
elements.
3. Measurable
– In terms of progress.

DR. Nabil Dmaidi

The Project Cost System

Objectives of Establishing Project Cost System.

1. Keep the construction costs of the project within
the established budget
2. Develop labor and equipment productivity
information for estimating the cost of future
work.

DR. Nabil Dmaidi

Cost Code
Project Area Work Type Distribution
Number Code Code Code

0908B 05
03157.20 3
 Cost Code for stripping concrete
formwork for bridge deck (Labor).

DR. Nabil Dmaidi

Project Number

0908B 05 03157.20 3
 Eighth project in 1997 (Bridge)

DR. Nabil Dmaidi

Area Code

9708B 05 03157.20 3
 Geographic location
OR
 Associate Field Cost to Specific
Supervisor or Management

DR. Nabil Dmaidi

Work Type Code
9708B 05 03157.20 3
03 Concrete
0315 Concrete Formwork
03157 Wood Concrete Formwork
03157.20 Wood Concrete Formwork for Deck
03157.30 Wood Concrete Formwork for
Abutment

DR. Nabil Dmaidi

Distribution Code
9708B 05 03157.20 3
1. Total
2. Material
3. Labor
4. Equipment
5. Sub-Contract

DR. Nabil Dmaidi

Cost Code and Cost Control
 All items of expense are charged to the project
where they are incurred.
 "General" or "miscellaneous" cost accounts
should not be used, are poor practice, and should
be avoided.
 The cost code is to serve its basic purpose, it must
be understood and used consistently by all
company personnel.
DR. Nabil Dmaidi
COST ACCOUNTING REPORTS

 Cost report intervals are a function of the project

size, nature of the work, and type of contract
involved.

 There must be a balance between the cost of

generating the reports and the value of the
management information received

DR. Nabil Dmaidi

COST CODES
 The most widely used cost codes are
– Masterformat, CSI (Construction Specifications Institute)
– Uniformat, UCI (Uniform Construction Index).

 Masterformat is widely used software companies and

government agencies.

DR. Nabil Dmaidi

 Most contractors match their cost control
system to their payroll periods and to their
time-monitoring system.

DR. Nabil Dmaidi

COST CODES (cont.)

 Masterformat
– Has 16 divisions
– Divisions were developed according to trades

 Uniformat
– Has 12 divisions
– Tends to follow the progress of construction

DR. Nabil Dmaidi

 05 Met als

09 Finishes

11Equipment
04 Masonry

16 Elect rical
03 Concret e
02 Sit e work

12 Furnishings

15 Mechanical
10 Specialit ies
06 Wood & Plast ic

08 Doors & Windows

14 Conveying Syst ems

13 Special Const ruct ion
01General Requirment s

07 Therm. & Moist ure Prot ect .

Design Uniformat
Level 3 Level 2
011St andard Foundat ions 01General Requirement s
012 Spec. Foundat ion Cond.
021Slab on Grade 02 Subst ruct ure
022 Basement Excavat ion
023 Basement Wall
031Floor Const ruct ion 03 Superst ruct ure
032 Roof Const ruct ion
033 St air Const ruct ion
041Ext erior Walls 04 Ext . Closure
042 Ext . Doors & Windows
05 Roofing
061Part it ions 06 Int . Closure

DR. Nabil Dmaidi

062 Int erior Finishes
063 Specialt ies
07 Conveying Sys.
081Plumbing 08 Mechanical
082 H.V.A.C.
083 Fire Prot ect ion
084 Spec. Mechanical Syst .
091Services & Dist ribut ion 09 Elect rical
Relationship Between UNIFORMAT & MASTEFORMAT

092 Light ing & Power

093 Spec. Elect rical Syst .
10 Gen. Cond. OH & P
111fixed & Movable Equip. 11Equipment
112 Furnishings
113 Special const ruct ion
121Sit e Preparat ion 12 Sit e Work
122 Sit e Improvement s
123 Sit e Ut ilit ies
124 Off-Sit e Work
UNIFORMAT Level A and B

Tot al Building Cost s

0100 Foundat ion (level A) 0620 Int erior Finishes 0920 Light ing-Power
0110 St andard (level B) 0630 Specilt ies 0930 Special Elect rical Syst ems
0120 Special (level B) 0700 Conveying Syst ems 0940 Communicat ions Syst ems
0200 Subst ruct ure 0710 Elevat ors 0950 Elect rical Heat ing Syst em
0210 Slab on Grade 0720 Moving St airs/Walks 1000 General Condit ions
0230 Basement Walls 0730 Dumwait ers 1100 Equipment
0300 Superst ruct ure 0740 Pneumat ic Yubes 1110 Special Equipment
0310 Floor Const ruct ion 0750 Ot her Conveying Syst ems 1120 Furnishings
0320 Roof Const ruct ion 0800 Mechanical 1130 Special Const ruct ion
0330 St air Const ruct ion 0810 Plumbing
0400 Ext erior Closure 0820 HVAC
Tot al Base Const ruct ion Cost
0410 Ext erior Walls 0830 Fire Prot ect ion
0420 Ext erior Doors and Windows 0840 Medical Gases 1200 Sit e Work
0500 Roofing 0850 Sewage Treat ment 1210 Sit e Preparat ion
0600 Int erior Const ruct ion 0900 Elect rical Syst ems 1220 Sit e Improvement
0610 Part it ions 0910 Basic Mat erials 1230 Sit e Ut ilit ies

DR. Nabil Dmaidi

Drawings

Nabil Dmaidi 113

What’s “Drawings” ?

Plans are a set of two-

dimensional diagrams or
drawings used to
describe a place or
object, or to
communicate building or
fabrication instructions.
Usually plans are drawn
or printed on paper, but
they can take the form of
a digital file.

Nabil Dmaidi 114

The Importance of Drawings:

1- They are a form of

communication better
than words.
2- Many drawings can be
done searching for what
looks best.
3- The design tells us what
we want to achieve in the
final appearance.
4- The drawings guide the
estimators in bidding
phase.

Nabil Dmaidi 115

The Importance of Drawings/cont.

5- It shows the contractors

the project dimensions
and a lots of
information.
6- It guides the consultant
engineer how the work is
going on.
7- It considered as
reference if any
problems appeared.

Nabil Dmaidi 116

Advantages of drawings:

1- Clearly define aspects of

engineered items.

2- Conform to standards.

3- Minimize confusion.

Nabil Dmaidi 117

Pre - Drawing Activities:

* Bidding and construction

information conveyed by
two major devices:
* Specifications
(written material).
* Drawing
(graphic presentation).

Nabil Dmaidi 118

Preliminary Activities:

1- Provide design concept

schematics.
2- Preliminary drawings
prepared to the degree
that owner can visualize
the total project.
3- Anything that can
contribute to a more
complete understanding
of the client shall be
considered.

Nabil Dmaidi 119

Types of drawings:

1- Contract drawings.

2- Working drawings.

3- Shop drawings.

4- As-built drawings.

Nabil Dmaidi 120

Contract drawings:

* The contract drawings

are used as an essential
part of the contract.
* Keep a set on the job
with all changes and
revisions posted.
* Assign someone this
responsibility.

Nabil Dmaidi 121

Working drawings:

A working drawing is a type of technical

drawing, which is part of the documentation
needed to build an engineering product or
architecture. Typically in architecture these
could include civil drawings, architectural
drawings, structural drawings, mechanical
drawings, electrical drawings, and plumbing
drawings.

Nabil Dmaidi 122

Shop drawings:

A shop drawing is a drawing or set of drawings

produced by the contractor, supplier,
manufacturer, subcontractor, or fabricator.

Shop drawings are typically required for pre-

fabricated components. Examples of these
include: elevators, structural steel, trusses, pre-
cast, windows, appliances and cabinets.

The shop drawing is the manufacturer’s or the

contractor’s drawn version of information shown
in the construction documents.
Nabil Dmaidi 123
Shop drawings/cont.

The shop drawing normally shows more detail than the

construction documents. It is drawn to explain the
fabrication and/or installation of the items to the
manufacturer’s production crew or contractor's
installation crews.

The style of the shop drawing is usually very different

from that of the architect’s drawing.

Nabil Dmaidi 124

 As-built drawings:

Revised set of drawing submitted by a contractor upon

completion of a project or a particular job. They reflect
all changes made in the specifications and working
drawings during the construction process, and show the
exact dimensions, geometry, and location of all elements
of the work completed under the contract. Also called
record drawings.

Nabil Dmaidi 125

Building construction drawings

 Title sheet (This sheet contains the name of

the project, owner, designer, and other
pertinent information related to the project).

Bid Documents
Nabil Dmaidi 126
126
Title sheet

Bid Documents
Nabil Dmaidi 127
127
Building construction drawings

 Index sheet (which provides a summary of all the

remaining sheet in the drawings, Its shows the list of
drawing. For building type project, the remaining
sheets generally follow this arrangement: civil,
architectural, structural, mechanical, electrical,
plumbing, and fire protection.

Bid Documents
Nabil Dmaidi 128
128
Index sheet

Bid Documents
Nabil Dmaidi 129
129
Building construction drawings

 Plans, elevations, and section.

 Plan views (Views looking vertically down

on the object ).

 Elevation views (Views looking

horizontally at an object ).

Bid Documents
Nabil Dmaidi 130
130
Plane views

Bid Documents
Nabil Dmaidi 131
131
Building construction drawings

 Perspective views (Views looking at an object

from a point that is not perpendicular to any
face of the object).
 A section view (view of the object as seen by
passing a cutting plane through the object)
 A detail (is an enlargement of a specific area of
a project. Connections of structural
components are generally sown as details).

Bid Documents
Nabil Dmaidi 132
132
Detail drawing

Bid Documents
Nabil Dmaidi 133
133
Building construction drawings

 Isometric or pictorial drawings. It is a

common practice to show the routing in
three-dimensional pictorial drawings).

Bid Documents
Nabil Dmaidi 134
134
Building construction drawings

Line Work:
Several types of line work that are used in preparing drawings
include:
 Thick lines-outline edges of objects (plans and elevations).
 Thin lines with short dashes-denote the centerline of an object
 Phantom lines-show the path of moving parts
 Broken lines-denote the object is longer than shown
 Short dashed lines-denote edges on the object that cannot be
seen from the near side surface of the object

Bid Documents
Nabil Dmaidi 135
135
 Building construction drawings

 Scales
 Usually the type of scale used is identified at the bottom of
the page on the drawings.

Bid Documents
Nabil Dmaidi 136
136
 Building construction drawings

 Scales
 Two types of scales are used in construction drawings, the architect’s scale
and the engineer’s scale.

 The architect’s scales that are commonly used for plans and elevations
include 1/32 in. = 1 ft and 1/16 in. = 1 ft. Complicated areas often use the ¼
in. = 1 ft, or ½ in.

 The engineer’s scale, graduated in tenths of an inch, is often used for civil,
structural, and mechanical drawings. The scales are 10, 20, 30, 40, 50, and
60.

Bid Documents
Nabil Dmaidi 137
137
 Building construction drawings

 Schedules

 To simplify the presentation of repetitious items (such as

footings, columns, doors, windows, room finishes, etc.) a
schedule is frequently used. Likewise, a footing schedule is
a listing of all footings in the foundation, showing the
diameter, depth, type, size, and number of reinforcing bars.

Bid Documents
Nabil Dmaidi 138
138
 Building construction drawings
 Symbols and abbreviations
 Symbols are used on the drawings to identify the
types of materials and work required during
construction.
 Abbreviations of organization that produce
technical information and standards for materials
are frequently referenced in the specifications of
contract documents.

Bid Documents
Nabil Dmaidi 139
139
Detail drawing

Bid Documents
Nabil Dmaidi 140
140
Specification

Nabil Dmaidi 141

 Specifications

The Most Important thing you will ever

build will be your Reputation!

Nabil Dmaidi 142

 Specifications

Specifications are written instructions to be

used in conjunction with the drawings so
that together they fully describe and
define the work that is to be accomplished
along with the method and quality that
will be required. They supplement the
Drawings and show information that
cannot be easily shown in graphic form.

Nabil Dmaidi 143

 Purpose Of Specifications

 Guide the bidders in cost estimates for

their proposals

 Guide the Contractor during the:

 Construction Phase
 Erections and Installations
 Ordering of materials
 Performance of work

Nabil Dmaidi 144

 Relationship To The Drawings

 Normally the Drawings provide a physical

description of the project and the Specifications
provide information regarding:

 Quality of materials

 Quality of workmanship

 Erection and installation methods

 Test and Inspections

Nabil Dmaidi 145

Users of Specifications j276

1. During bidding process

· Estimators for G.C.
· Subcontractors
· Material suppliers

2. Pre Construction process

· Planning and zoning department
· Permit issuing authority
· Various government agencies
Nabil Dmaidi 146
Users of Specifications j276

3. During construction phase

· Project manager
· Project superintendent
· Crew foremen
· Individual workers
· Inspectors
· Schedulers
· Cost control personnel
· Shop drawing checkers
· Fabrication and installation persons
Nabil Dmaidi 147
 Technical Specifications j276

 Spell out the technical requirements of

the project. Have restricted
application, usually to only a limited
or specific part of the project.
 Provisions make it possible and
practical to assign the responsibility
for each of these provisions to the
proper party, which is important
contract system of construction.

Nabil Dmaidi 148

 Reference Sources For Specifications
J279

 Specs writing requires tremendous amount of

 Knowledge

 Information

 Specification writer should have:

 An extensive personal library

 All time ready access to reference information

(additional)
 Remembering where to get information is more
important than remembering the information sources

Nabil Dmaidi 149

 Codes As References J279

 Codes exist in cities

 Building Codes
 Plumbing Codes
 Electrical Codes
 Construction shall conform with applicable codes and
ordinances.
 There may be occasions when codes overlap. In such
case, highest or most demanding will prevail.
 Where there are no local codes, “accepted standards of
good practice” must be observed.

Nabil Dmaidi 150

 Continued.....
 Model codes have national distribution and use.
Examples of model codes:
 UBC (Uniform Building Code)
 NBC ( National Building Code)
 SSBC ( Southern Standard
Building Code)
 BBC (Basic Building Code)
 NPC (National Plumbing Code)
 NEC (National Electric Code)
 LSF (Life Safety Code)

Nabil Dmaidi 151

continued...

 Specification standards by
 Professional and industry associations
 Recommended specifications by
 Materials manufactures

 Guide specifications by
 Government agencies

 Municipalities

 County, States, and Cities

Nabil Dmaidi 152

 Prepared By Whom

 The Design Firm

 While one person or department is

responsible for their preparation, the
specifications are ultimately done by all
those involved in the project.

Nabil Dmaidi 153

 Approaches To Writing
Specifications

 Performance or Results
Specifications

 Methods or Prescription
Specifications

Nabil Dmaidi 154

 QUALIFICATIONS for SPEC
WRITER
 A thorough knowledge of the
construction process and design process

 A good understanding of construction

materials and construction methods

 Be skillful with written English and

adapt a sense of fairness

Nabil Dmaidi 155

 Use Of Standard Forms

 Specifications should be presented:

 In standard forms
 In understandable language
 4 C’s
 CLEAR
 CONCISE
 CORRECT
 COMPLETE
Nabil Dmaidi 156
 SPECIFICATIONS II

MOTTO: “SKILL, RESPONSIBILITY,

AND INTEGRITY”
AGC
Associated General Contractors of America

Nabil Dmaidi 157

 PERFORMANCE or RESULTS
SPECIFICATIONS
 Describe in detail the required performance or service
characteristics of the finished product or system.

 Methods used to achieve desired results is left to the

discretion of the Contractor but must be guaranteed.

 Methods of testing and measurement, to evaluate the

results, should be spelled out in the specifications.

 Avoid drastic changes from performance standards.

Nabil Dmaidi 158

 PERFORMANCE or RESULTS
SPECIFICATIONS
 Present specifications in an orderly fashion to guard
against errors and omissions including:

 General description of product / system

 Design and installation requirements

 Product/systems operation conditions

 Test / measurements information detailed

 Guaranties / warranties required

Nabil Dmaidi 159
PERFORMANCE SPECS (Cont.) J284

1) Advantages:
 Provides wide competition among products and
systems.
 Contractor improves its experience and knowledge
in its specialized field.
 Specs writer does not need to have an extensive
knowledge of products and systems as would be
required under prescription specs.
2) Disadvantages
 Devising adequate testing / measuring systems by
which results can be evaluated is difficult.
 Used in connection with equipment
Nabil Dmaidi 160
 PRESCRIPTION OR METHODS
SPECIFICATIONS

 Specifications describe in detail:

 The methods to be used
 The procedures to be followed
 If the material is specified by brand name or manufacturer, the
specifications writer has the advantage of knowing the performance
characteristic of the material/system because of its past performance
on other projects.
 Also used when outside appearances
will not necessarily disclose defects.
(e.g.. brick masonry and concrete)
 A Specifications writer assumes more responsibility with Prescription
Specifications.

Nabil Dmaidi 161

PRESCRIPTION OR METHODS
SPECIFICATIONS

 The Specifications writer warrants the performance

of the products/systems and not the Contractor.

 The Specifications writer should make sure the

requirements are realistic.

 The Specifications writer should be fully aware of

the materials and field methods he is specifying.

 Impractical requirements lead to extra costs to the

Owner
Nabil Dmaidi 162
 OPEN VS CLOSED
SPECIFICATIONS
 OPEN SPECIFICATIONS
 Open to all qualified bidders
 Encourages competition among firms/manufacturers
 A must for publicly funded projects

 CLOSED SPECIFICATIONS

 Available to only one firm

 The use of only one product brand

Nabil Dmaidi 163

 APPROVED “OR EQUAL” PHRASE

 Restricted specification is the combination of Performance and

Prescription Specifications.
 Minimum 2 brand names listed followed by the phrase
“or approved equal.”

 The phrase “or equal” is interpreted

to mean approved as equal by the Design Professional.

 Contractor’s request for another brand to be added to the list,

must be done at the bidding stage. If the Design Professional is
in agreement, an addendum will be issued.

Nabil Dmaidi 164

 DISADVANTAGES of RESTRICTED
J284
SPECIFICATION

 Restricted specs does not violate the law prohibiting closed

specs on public projects.
 Sometime difficult to find products that are equal and that
meet specification writers approval.
(Use performance specs in this case).
 In situations where only one manufacturer’s product will give
desired results, then,
 If manufacturer is aware of absence of competition, it may
increase price.
 Costs more to owner (Use closed specs in this situation)

Nabil Dmaidi 165

 STANDARD FORMAT
 Single standard format
 Avoid confusion
 Assures effective communication

 C.S.I. FORMAT
by Construction Specification Institute
 Goals
 Improved quality of Construction Specifications.

 Achieve uniformity in specification writing by furnishing a

standard arrangement of material.

Nabil Dmaidi 166

 THREE PART SECTION FORMAT

PART I GENERAL
 Scope of work
 Submittals for approval
 Delivery
 Job conditions
 Guaranties
PART II PRODUCTS
 Technical specifications for material or equipment
PART III EXECUTION
 Quality of workmanship
 Installation or erection procedures
 Finishes
 Provisions for testing and inspections

Nabil Dmaidi 167

 C.S.I. FORMAT
ADVANTAGES
 Increase bidding accuracy
 Greater control for contractor
 Assisting design professional in producing more complete
specifications.
 Facilitates the transition from estimating quantities/costs to bidding
to scheduling to cost accounting to data base.
INTENDED FOR:
 Buildings
 Adopted by AGC, AIA,
USCE, & NSPE
 Whenever a job does not use
certain division it is skipped, but the numbers of the remaining
divisions remain the same.

Nabil Dmaidi 168

 CSI Divisions

0. Bidding and contract requirements

1. General Requirements
2. Site Work
3. Concrete
4. Masonry
5. Metals
6. Wood and Plastics
7. Thermal and Moisture Protection
8. Doors and Windows
9. Finishes
10. Specialties
11. Equipment
12. Furnishings
13. Special Construction
14. Conveying Systems
15. Mechanical
16. Electrical
Nabil Dmaidi 169
Other Standard Formats

 AASHTO - American Association of State

Highway and Transportation Officials

 For use with Highway construction, Major

structures, and Bridges.

 AASHTO Format has 7 sections

Nabil Dmaidi 170

 ESCAPE CLAUSES

 In attempt to protect the owner's interest, some

specifications writers make use of exclamatory
clauses, also referred to as “escape” or “weasel”
clauses.

 These are clauses that shift the responsibility

from the responsible party to the contractor.

 They thus enable either the owner or the design

professional to avoid responsibility.
Nabil Dmaidi 171
 Contracts

Chapter Three (A)

Nabil Dmaidi 172

A Philosophy on Contracts
 If you can’t do a job on the basis of a
handshake, you don’t want the job.

 Always back up the handshake with a

water-tight explicit contract

Nabil Dmaidi 173

Hammurabi’s Code

Nabil Dmaidi 174

Definitions
 Contract: An agreement, usually between two parties, that
is enforceable by law.
– Unilateral – one side makes a promise, expecting
performance from the other
– Implied – terms not clearly stated
– Written contract – terms specifically stated on paper
– Verbal contract – spoken agreement
– Estoppel – contract becomes binding in spite of the fact
that no formal agreement has been made.
– Entire vs. Severable – Partial compensation for partial
performance
– Subcontract – contract between one contract party and a
third party to perform some part of primary contract
Nabil Dmaidi 175
Elements of Contracts
 Offer and Acceptance (counteroffer)
 Meeting of the minds – parties agree at time of contract
on basic meaning and implications
 Consideration – something of value
 Lawful subject matter
 A contract is executed when both parties have fully
performed in accordance with the contract.
 Defaults and Remedies
– Damages
– Specific performance
– Liens

Nabil Dmaidi 176

Writing an effective contract
 The more explicit and detailed, the better
 Include physical, demonstrable deliverables
 Include deadlines as contract requirements
 Specifically address remedies for failure to perform
 Specifically address issues of severability
 Specifically address subcontract issues
 Specifically address confidentiality terms
 Specifically address bonding and insurance
requirements
 Specifically address grievance procedure
 Get it checked by a contract lawyer

Nabil Dmaidi 177

Project Structure
 Owner’s option, subject to procurement and
other regulations
 Should provide incentives to meet owner’s
objectives
 Determines owner’s level of control and
oversight

Nabil Dmaidi 178

Considerations in Project
Structure
 Experience, involvement level of owner
 Objectives – cost, quality
 Relationship between owner and
engineer/architect
 Preferences of engineer/architect
 Managing the interests of involved parties

Nabil Dmaidi 179

Methods of Contracting
 Open Competitive Bidding
 Selected Competitive Biding
 Negotiation

Nabil Dmaidi 180

The Players
 Owner
 Engineer/Architect
 General Contractor
 Subcontractors
 Laborers
 Regulators

Nabil Dmaidi 181

Architects and Engineers
 Architect: One whose occupation is the utilization of
expertise in the formulation of designs, detailed plans,
and specifications used by a contractor on the erection
or alteration of a building. May include supervision of
construction.

 Professional Engineer: A person engaged in the

professional practice of rendering service or creative
work requiring education, training, and experience in
engineering sciences and the application of special
knowledge of mathematical, physical, and engineering
sciences in such professional or creative work as
consultation, investigation, evaluation,
Nabil Dmaidi 182
 Traditional Contract Agreement

Owner Engineer/Architect

General Contractor

Subcontractor Subcontractor

Worker Worker Worker Worker Worker Worker

Nabil Dmaidi 183

 Separate Contracts Arrangement (Construction
Project Management)

Owner Engineer/Architect

Subcontractor Subcontractor

Worker Worker Worker Worker Worker Worker

Nabil Dmaidi 184

Design-Build
Owner

Engineer/Architect Contractor

Subcontractor Subcontractor
Worker Worker
Worker Worker Worker Worker

Nabil Dmaidi 185

Outline:
 Introduction to Risk Management
 Bonds, purposes of bonds, and types of
bonds
 Construction Insurance, its requirements
and general insurance topics
 Construction safety and safety programs

Nabil Dmaidi 186

 Introduction to Risk Management
• Risk in the construction industry is highly
unpredictable and extreme.
• In construction projects, risk is a major
concern for the engineer, the contractor and
the owner.
• Owners have instituted risk management
concepts to preclude losses resulting from
natural causes, accidents, and mismanagement.
• Risk management is a comprehensive
approach to handling exposures to loss.
Nabil Dmaidi 187
 Introduction to Risk Management, cont.

• Exposure is the potential for liability

and claims.
•
• Three ways to manage exposure:
– Minimize exposure (not for construction
projects)
– Bonding and insurance
– Make yourself an unattractive target for
claims
Nabil Dmaidi 188
Introduction to Risk Management, cont.

• Three types of losses:

– Losses from physical means can be
minimized through construction
insurance.
– Losses from mismanagement can be
minimized through specialty bonds.
– Losses due to accidents can be
minimized though the
implementations of an intensive
safety program.

Nabil Dmaidi 189

 Contract Bonds

 A contract bond is a guarantee by contractors

that they are financially capable of performing
the work identified in the construction contract.

 Three main types of contract bonds:

– Bid Bonds
– Performance Bonds
– Labor & Material Payment Bonds

Nabil Dmaidi 190

 Some definitions

– Principal: the party who is responsible to perform the

undertaken being bonded, (usually the contractor).

– Surety: the party who is guaranteeing the performance of the

principle, (the bonding company).

– Obligee: the party for whose benefit the bond is written (the
owner).

– Surety Bond: the written document given by the surety and the
principle to the obligee to guarantee a specific obligation.

Nabil Dmaidi 191

Indemnity Agreement: the contract between the
principle and the surety (the principle guarantees
the bonding company that no loss would happen
due to providing the bond).
Penal Amount: the face value of the guarantee,
usually 100% of the contract amount.
Claimant: the party who is filing a claim against
the bond to recover expenses or costs due to
nonperformance of the principal.
Lien: the legal right of a party to control the
property of another or have it sold in order to
recover payments of a claim by the injured party.

Nabil Dmaidi 192

 Purposes and advantages of bonds

 Bonds are used to guarantee completion of a project as

specified and that it will be free of liens when
completed.
 Main advantages of bonds:
– The owner is protected against the withdrawal of a favorable
bid by a contactor through bid bond.
– Suppliers and subcontractors are protected against non-
payment by a contractor with a labor & material payment
bond.
– The owner receives protection against default, breach of
contract or nonperformance by the contractor through a
performance bond.

Nabil Dmaidi 193

Disadvantages of bonds

– Bonding requirements may restrict

biding.
– Owners may not be aware of the
magnitude of the surety’s obligations or
services.
– Owners with large construction budgets
may not be able to pre-qualify
contractors.

Nabil Dmaidi 194

 Types of Bonds

1) Bid Bonds:
• A surety issues a bid bond to guarantee the contractor
will, within a specified period of time, enter into a
contract at the price submitted in the bid.
• The price of bid bonds vary, but 10% of the bid
amount is generally accepted.
• If the bidder has failed to execute a contract, and the
owner has made a claim to recover the difference in
the two low bids from the surety, the surety has to pay
the guaranteed amount to the owner.

Nabil Dmaidi 195

• Three possible defenses a surety can make:
– The low bidder can prove they made a
mistake in the preparation of their bid.
– The owner delays too long in making a
contract award.
– The owner tries to change the terms and the
conditions of the contracts between the award
and execution dates.

Nabil Dmaidi 196

Types of Bonds, cont.

2) Performance Bonds:
Performance Bonds provide the most
important protection for the owner.
• They guarantee the work will be
completed in accordance with the
contract document.
• In case of a breach or default by the
contractor, the surety has several
options:

Nabil Dmaidi 197

The surety can finance the project by
providing funds to the defaulting
contractor to complete the work.
The surety can pay the face amount of
the bond to the owner.
The surety can wait for termination of
the contract with the original
contractor, then complete the work
with another contractor of their choice.

Nabil Dmaidi 198

The surety does have some possible defenses against
the claims made by the owner, such as the
following:
Breach of Contract – If the owner has breached
the contract through wrongful delays,
nonpayment of invoices and change orders.
Overpayment – If the owner overpaid the
contractor for the completed work at the time of
the default.
Material Alternation – In case of significant
alternation without written notice to the surety.

Nabil Dmaidi 199

 Types of Bonds, cont.

3) Labor & Material Payment Bonds:

• They guarantee the project’s suppliers, subcontractors, and
other providers of labor, materials, goods, and services
will be paid.
• This bond is also beneficial to the owner. It provides
protection from unpaid parties filing mechanics liens
against the project property.
• A payment bond might generally cover:
– Equipment rental
– Freight and transportation fees
– Repair charges for tools and equipment
– Temporary structures, fuels, and union benefits.
Nabil Dmaidi 200
Items not generally covered
under a payment bond include:
Insurance premiums
Workers compensation
Financial loans and taxes.
Most payment bonds carry
certain limitations to claims,
which may vary from one
jurisdiction to another.

Nabil Dmaidi 201

Construction Insurance

 Construction Insurance provides protection for the proposed project and its
participants (the owner, contractor and the architect/engineer) from physical damage
and liabilities due to project losses.
 Each participant must carry adequate insurance coverage to protect
themselves.
 Insurance requirements:
– Owners insurance requirements.
– Contractors insurance requirements.
– Design professional insurance requirements.
 More details about construction insurance are in the following references:
– AIA Document A201, (http://www.aia.org/SiteObjects/files/A201-
1997Commentary.pdf)
– Construction Insurance Checklist in the text book.
– AIA Document B141,
(http://www.aia.org/SiteObjects/files/B141-1997Commentary.pdf)
Nabil Dmaidi 202
Owners insurance requirements

– Property Insurance: damage to one’s own property from

diverse causes as fire and theft is commonly insured against.
 AIA Document A201 (paragraph 11.3) describes the
types of loss protection typically carried by an owner on
a construction project.
– Owners Liability Insurance: the owner is responsible for
obtaining and maintaining their own general liability
policies that apply to their normal operations and protect
them against negligent acts by their employees or agents.

Nabil Dmaidi 203

Liabilities are an obligation imposed by the law
through either litigation or arbitration.
Liability insurance protects the owner in disputes
over claims of wrong doing or acts of negligence.
Loss of Use Insurance: owners may wish to
consider securing protection of their premises in
case they become unusable due to fire or other
hazardous causes.

Nabil Dmaidi 204

Contractors insurance requirements

– Property Insurance. Contractual requirements do not

usually address the contractor’s obligation to carry
adequate property insurance (for their personal
properties), but it is a good business practice.

– Contactor’s Liability Insurance: A contractor may incur

liability for damages in different situations, such as:
 Liability to injured employees
 Direct responsibility for injury or damage to the person
(not employee) or property of third parties, caused by
acts or omissions of the contractor
 Liability that may involve the contractor as a result of
the operation of their motor vehicles.
 Contingent liability: involves the direct liability of the
contractor for acts of parties for whom they are
responsible, such as suppliers and subcontractors
Nabil Dmaidi 205
Design professional insurance requirements

– Professional Liability Insurance: often overlooked by an

owner is the need for adequate insurance coverage by the
design professional.
 The engineering function carries major liability if done
incorrectly and should, therefore, be required to carry and
maintain professional liability insurance.
– There are two types of this kind of insurance:
 “claims made”: covers the engineer only for claims made, while
the policy is in effect. (common)
 “occurrence”: covers the engineer when acts occurs, while the
policy is in effect. (unavailable)

Nabil Dmaidi 206

 General Insurance Topics

 Insurance Certificates.
 Owner-Controlled Insurance Program:
– These types of programs are often referred to as “wrap-up”
insurance coverage.
– The owner provides all of the insurance for the project except
design professional and contractor professional liability insurance.
 Construction Insurance Checklist:
– Project Property Insurance.
– Property Insurance on Contractors Own Property
– Liability Insurance
– Employee Insurance
– Automobile Insurance
– Business, Accident and Life Insurance

Nabil Dmaidi 207

 Construction Safety
 Construction is a hazardous business.
 Due to its inherent dangers, construction safety has always
been a dominant concern of all parties associated with the
industry.
 Legislation enacted in 1970 as the Occupational Safety and
Health Act (OSHA) addresses safety requirements in all
businesses.
 In the 1980s, the government started to fine the owners (not
only the contractors) found violating any of the provisions of
the low.
 Safety has now moved from the arena of good business
practices into the criminal courts.
Nabil Dmaidi 208
 Construction Safety, cont.

 Safety programs on construction projects should be part of

the overall risk management procedures of the owner and
the contractor.
 Reduction in construction accidents has several good
benefits associated with it:
– It is humanitarian to be concerned about safety.
– It makes good business sense to reduce costs and losses
due to accidents.
– It makes for good public relations.
 Safety can be defined as an attitude.
 Management has the responsibility to establish an
environment in which unsafe work practices are not
tolerated.
Nabil Dmaidi 209
 The Importance of construction safety

 The construction industry employs about 5% of the total labor

force.
 It has accounted for about 11% of the occupational injuries and
20% of the fatalities resulting from on-the-job accidents.
 At an annual cost estimated at about $10 Billion.
 When an injury results from an accident, not only the workers
suffers physical damage or disability, but their families are
directly affected as well.
 The owner and/or the contractor do have social responsibilities to
the injured workers and their families and to the general public to
operate a safe workplace.
 Management is only now becoming fully aware of the total cost of
accidents on construction sites.

Nabil Dmaidi 210

 Safety Programs

 Owners and contractors a like need to plan and manage carefully

safety program established for a construction project to reduce the
probability of accidents.
 The primary obstacle to safety program implementation in
construction has traditionally been upper management’s lack of
support.
 A safety program can begin with the identification of problems
encountered on other similar projects or through experiences of the
workers.
 An effective safety program can prevent accidents and increase worker
productivity.
 Not only does a safe workplace lend itself to a productive atmosphere,
but it also proclaims management’s commitment to the welfare of its
employees and suppliers.
Nabil Dmaidi 211
 Claims
“Potential claim” applies to any difference arising out of
the performance of the work that might reasonably lead
to the later filing of a claim by the contractor, if the
differences cannot be resolved in the field.

To become a claim:

 Protest and potential claim have not been resolved

during the process of the work and have been restated
with the return of the “Final Estimate.”

 First Notice with “Final Estimate.”

Nabil Dmaidi 212
 Claims

CONTRACTOR OWNER OR AE REP. OR

CM OR GOV’T/KO

CONTRACT
Resolve at lowest level

DISAGREEMENT
In writing, letter to owner
POTENTIAL CLAIMS

REVIEW:
a. Facts
b. Timeliness of submittal
Nabil Dmaidi 213
 Claims

REVIEW:
a. Facts
b. Timeliness of submittal

CLAIMS HAS MERIT

RESOLVED
NO ISSUE
BECOMES A CHANGE
ORDER
Disagreement
FILE CLAIM
SETTLE CLAIM
HOW TO SETTLE IT IN CONTRACT?

CONTRACTS ROUTINELY INCLUDE

PROCEDURES ON HOW
Nabil TO SETTLE
Dmaidi 214
Settlement of Disputes by Arbitration

What is Arbitration?
Voluntary submission of a dispute to one or
more impartial persons for final decision and
determination
 Private
 Informal
 Quick
 Practical
 Inexpensive settlement
Nabil Dmaidi 215
 Settlement of Disputes by Arbitration

Most used: American Arbitration Association

 Arbitrators are quasi-judicial officers.
Usually 3, majority rules
 Not lawyers, but experts in the field of construction
 Rules of evidence do not apply
 Hear all evidence
 Hear no arguments or evidence from one side without
comment from other side
 Arbitrator judgment is final in decision and award
 No written opinion required.
 Award written single sheet
 Courts will not review the Arbitrators decision
Nabil Dmaidi 216
 Claims When Government is the Owner

 COR - Resolve with contractors representatives (Lowest level)

 CO - Receive letter of potential claim
 CO - Write contracting officer decision after reviewing the facts
 Contractor has 30 days to resubmit claim Government contracts
have disputes procedures:
Contractors
CO - Review, CO decision
CO’s Boss
Office Chief of Engineers
Engineer’s Board of Contract Appeals (Decision Final)
Contractor

Nabil Dmaidi 217

 Check List
I. Prebid
A. Invitation, notice, Dodge or other reports
B. Meetings - minutes
C. Site visits - notes/minutes/photographs
D. Proposed schedules and sequences
E. Estimates and back-up work sheets
II. Bid
A. Copy all papers submitted or issued (bid or proposal)
III. Post-Bid/Precontract
A. Negotiations meetings - notes and Minutes
B. Scheduling sessions - notes and minutes
C. Cost-reduction calculations
D. Bonds - payment and performance
IV. Contract Signing
A. Check all contract documents
V. Construction

Nabil Dmaidi 218

 Write

A. If no minutes are prepared,

prepare memos for your own files.

Confirm decisions, instructions or orders.

B. Read the minutes

If you do not agree , write your own

C. Answer all correspondence

D. Maintain chronological & subject files

Nabil Dmaidi 219
 Preparation for
Claims Defense
ORIENTATION
A. Owner / Consultant / construction
manager / general contractor /
subcontractor / controlling agency
correspondence files
B. Schedules
C. Job meetings and conference - notes and
minutes
D. Oral instruction
E. Fields orders
Nabil Dmaidi 220
F. Drawing logs
G. Submittal logs
H. Change estimates - including all
calculations
I. Extra work costs
J. Field survey book and computations
K. Cost records
L. Job diaries/logs
M. Photographs
Nabil Dmaidi 221
 [Chapter Three]
(B)
Estimating Processes

Nabil Dmaidi 222

Decision to Bid

Factors affect on how to choose

Decision
the project to bid ; to Bid

• The Project type

• Skills and availability of labor and Estimating
equipment Process
• The experience in building & bidding
• Owner and Designer

Nabil Dmaidi 223

 Decision to Bid
Contractor should compare the investment of
time and money to prepare the estimate
with :

 Probability for winning the bid

 The risk during the construction
 Profit.
Nabil Dmaidi 224
Estimating Process
Kickoff
meeting

Establish Estimate Update

standards work plan database

Prepare
estimate
Reality check Document
(based on estimate Revise estimate Lessons learned
internal review ) (based on for continuous
Estimate
Review external review) improvement
feedback
for continuous estimate
improvement Adjust
estimate No
Yes
Project
execution
Project
completion
Nabil Dmaidi 225
Kickoff meeting
The Kickoff meeting is the first meeting
of the estimating team

 To ensure alignment between the customer and

the estimating team before starting an estimate
.
 To understand the customer expectation and
the estimating team’s ability .

Nabil Dmaidi 226

 Kickoff meeting
Check of issues for the estimate kickoff meeting

 What are the owner expectations ?

 What is the required specifications?
 What is availability of the material suppliers and
subcontractors ?
 What is availability of the labor at the construction site?
 what is the time allowed for construction ?
 Are there liquidated damages ?
 Have similar projects been developed previously?

Nabil Dmaidi 227

Estimate work plan
The work plan is a document to guide the team in
preparing the estimate and improving the estimating
process .
 Identify the work , the team , the time , and the cost.
 Identify the tools and techniques to meet the level
of scope definition and the accuracy of the estimate.
 The estimate work plan is unique for each project

Nabil Dmaidi 228

Preparing Estimate
A- Site investigation
B- Estimating procedure
C- Risk analysis “contingency”

Nabil Dmaidi 229

Site visit
 To investigate the physical characteristics
of the project site .
 To collect information and evaluate any
constraints or limitation observed during the
investigation , including capacity of roads
and bridges for transporting material and
equipment to the job , available storage
space.

Nabil Dmaidi 230

 Estimating procedure
 Development of construction methods:
– The construction method affect all other aspect of
the estimate , so it should be selected early .
– Prepare a preliminary estimate for each
construction method to select the most economical
one.

Nabil Dmaidi 231

 Estimating procedure
 Material quantity takeoffs
– Breakdown the project to evaluate the required
cost and time to reduce errors .

Nabil Dmaidi 232

 Estimating procedure
 Preparation of the construction schedule:
– The duration depends on the productivity rates
and resources limitations .
– Milestone should be considered in preparing
schedule

Nabil Dmaidi 233

 Estimating procedure
 The estimate of the costs
– Direct and indirect costs can be calculated after the
breakdown.

Nabil Dmaidi 234

 Documentation of Estimate

 Estimate documentation is essential for

presentation , review and future use of the
estimate (database)

Nabil Dmaidi 235

Review estimate
Include:
 the backup materials

 assumptions

 Unit prices

 Productivity rates

Nabil Dmaidi 236

Reality Checks
 to make sure the costs developed are within
reason .
 This can include :
 Simple checks for reasonableness.
 Comparisons with similar projects
 Comparisons with industry data
(dollars/square foot , indirect/direct costs ,…)
 Check ratio
(lighting /fixtures , fire protection/sprinkler,…)

Nabil Dmaidi 237

Estimate Quality
The quality of any estimate is governed by these
major considerations:

 Quality and amount of information available

for preparing the estimate (the old database)
 Time allocated to prepare the estimate
 Proficiency of the estimator used in preparing
the estimate

Nabil Dmaidi 238

 [Chapter Four]

Conceptual Cost Estimating

Nabil Dmaidi 239

Table of contents:

 Conceptual cost for process industry

Nabil Dmaidi 240

Introduction
 Cost estimates have two main parts:
 Conceptual (approximate) Estimates
 Detailed Estimates

Why we need conceptual cost estimates?

 For owner: part of economic feasibility study.
 For engineer: used in selection of design alternatives,
to keep the owner of forecast costs, and to keep the
design within the authorized budget.

Nabil Dmaidi 241

Introduction continues
 Conceptual estimates have many levels of
accuracy :
1. level 1: accuracy within 40%
2. level 2: accuracy within 25%
3. level 3: accuracy within 10%

 This estimate requires:

 Knowledge and experience .
 Cost information from previous similar projects
 Considerable engineering judgment
Nabil Dmaidi 242
Preparation of Conceptual cost estimate
Broad-scope of conceptual cost estimate:
Prepared prior to the design.
1. Developing unit cost:
uc=forecast unit cost
A=min. unit cost of previous projects
B=avg. unit cost of previous projects
c= max. unit cost of previous projects.

uc  A  4B  c
6
Nabil Dmaidi 243
Preparation continues
2. Adjustments
 Time Adjustment:
 Represents the relative inflation or deflation of
costs w.r.t. time/ indices for economic trends.

Forecasted cost(FC)= previous cost(PC)*(1+i)n

i= equivalent compound interest rate
n=number of years

Nabil Dmaidi 244

Preparation continues
 location Adjustment:
 Represent relative differences in costs of materials,
equipments and labor/indices for location changes.
FC=PC*location index of proposed project/ location index of
previous project

 Size
adjustment (unit cost adjustment)
The estimator has to adjust the unit cost according to
number of units, by developing an equation that represent
the changes of unit costs with number of units.

.
Nabil Dmaidi 245
Preparation continues
Narrow-scope of conceptual cost estimate:
Prepared during the design phases, where more information
is known about various components.
Prepared in the same manner to that broad scope estimate,
except the project is subdivided into parameters, such as
cubic yards of concrete foundations, square feet of
furnished floors, tons of structural steel, etc.

Nabil Dmaidi 246

Conceptual Costs For Process
Industry
 Selection of the methods for preparing early
estimates depends on:

 Level of scope definition.

 Desired accuracy.

 The intended use of the estimate.

Nabil Dmaidi 247

Methods used to find the cost in the
process industry:
 Cost capacity curve.

 Capacity ratios, raised to an exponent.

 Plant cost per unit of production.

 Computer-generated estimates.

Nabil Dmaidi 248

Cost capacity curves:

Cost capacity curves: is a graph that

plots cost on the vertical axis and
the capacity on the horizontal axis.

Nabil Dmaidi 249

Example:

Nabil Dmaidi 250

Capacity ratios raised to an
exponent:
 It is a mathematical solution to the cost
capacity curves, which is a graphical
technique.

Nabil Dmaidi 251

Cost of Process Unit A= (Cost of Process Unit
B)*(capacity of process unit A/capacity of
process unit B)^x

X: factor between 0.55 and 0.88 depending on

the type of process unit (usually 0.6 is used)

Nabil Dmaidi 252

Example:
 Cost of a 320(cf/hr) process unit=$675,000
Capacity ratio x = 0.72
Estimate the cost of a similar process unit with a
capacity of 450 cf/hr
Solution:
Cost of Process Unit A= ($675,000)*(450/320)^0.72

=$862,797

Nabil Dmaidi 253

Plant cost per unit of production:
 It is used to estimate the total plant cost
based on the average per unit of production
based on previously completed projects.

This method is simple and approximate

estimating technique.

Nabil Dmaidi 254

 Example:

 From cost records:

average cost per unit for co-generation
facilities is ($1,000/kW) of production.
For a future 300-megawatt (300MW) co-
generation facilities.
Solution:
The estimate cost = ($1,000/kW* 300MW*1000
kW/MW)
=$300,000,000
Nabil Dmaidi 255
This method assumes that the relationship
between plant cost and production capacity
is linear.

Nabil Dmaidi 256

Computer Generated Estimates:
 These computer software packages are
available to assist the estimator in
generating conceptual estimates.
 They can be used for detailed material
quantities such as:
1. Equipment and material costs
2. Construction work hours and costs.
3. indirect field costs and engineering work
hours and costs.
Nabil Dmaidi 257
 The detailed quantities :

 The detailed quantity and cost output enables

early project control, which is essential in the
preliminary phases of a project before any
detail engineering has started.

Nabil Dmaidi 258

The accuracy of the estimate :

 The accuracy of an estimate can be

improved because the systems allow
vendor costs, takeoff quantities, project
specifications, site conditions to be
introduced in the program.

Nabil Dmaidi 259

•To maximize benefits of these software program, the use of
system default should be minimized and replaced with
definitions as follows:

 Specifications, standards, basic practices, and procurement

philosophy.
 Engineering policies.
 Preliminary plot plans (if available) and information relating to pipe
rack, structures, buildings, automation, and control philosophy.
 Adequate scope definition.
 Site and soil conditions.
 Local labor conditions relating to cost, productivity, and indirect
costs.
 Subcontract philosophy.

Nabil Dmaidi 260

 [Chapter Five]

Cost of Construction Labor and Equipment

Nabil Dmaidi 261

Cost of construction labor

Nabil Dmaidi 262

The importance of labors

- They influence every part of a project .

- They operate equipment ,fabricate and install

materials and make decision that have a major effect
on the project.

- Most persons involved in construction agree that

people are the most important resources on a project.

Nabil Dmaidi 263

The cost of labor

1-The straight –time wage plus any over time pay

2- social security tax.
3- unemployment compensation tax.
4- workers compensation insurance
5- public liability and property damage insurance.
6- fringe benefits

Nabil Dmaidi 264

 Labor wages

Wage rate vary considerably with the location of

project and the various type of crafts and it
determine by on of three means:
1-union wage
2-open-shop wage
3-privailing wage

Nabil Dmaidi 265

Labor wages

--Wage rate within 40 hr/week , 8 hr /day and 5

day/week is called base rate.
-
- For work in excess of 8 hr/day or 40 hr/week the
base rate is generally increased to(1.5-2) times the
base rates

Nabil Dmaidi 266

Social security tax

- Federal Government Requires Employers to be

taxed for providing retirement benefits for
employees

- The Rate = 7.65% of Total Earnings (Avg.

Wage) up to $76,000/Year of Employee wage

- The Employee Contributes an Equal Amount

Through the Employer
Nabil Dmaidi 267
Unemployment compensation tax

- This tax is Collected by the State to compensate

workers during period of Unemployment.

Paid by Employers. -

- Usually 3% of Total Earnings (Avg. Wage) of

the Employees.

Nabil Dmaidi 268

Workers compensation insurance

- To provide financial assistance to the employee or

to his or her family in the event of an injury or
death.

- Insurance Paid by Employers.

- Premium Rate is Specified in $s per $100 of Base

Wage and vary Depending on Company's record
of accidents.

Nabil Dmaidi 269

Public liability and property
damage

- - This Insurance Protects the Contractor against

injuries to the general public or damage to public
property due to actions of the employee while
working during construction.

- Premium is Specified in $s per $100 of Base Wage

and vary Depending on Company's record of
accidents.

Nabil Dmaidi 270

Fringe benefits

The contractor often Pay Benefits in Terms of :

- Health insurance.
- Pension Plans.
- Training program.
- Paid holiday.
- Vacations.

Generally the costs is a percent of base wage.

Nabil Dmaidi 271

Productivity rates for labor

- A production rate is defined as the number of units

of work produced by a person in a specified time,
usually an hour or a day.

- Productivity rates depend on:

1- labors.
2- projects.
3-climatic condition.
4-job supervision.
5-complexities of the operation.
Nabil Dmaidi 272
Cost of construction equipment

Nabil Dmaidi 273

Construction equipment

 All projects involve the use of construction

equipment to some extent.

 Any estimate must include the cost of equipment

on the project.

Nabil Dmaidi 274

Sources of Equipment

 Construction equipment can be purchased or

rented . Choice between purchased and rental
usually depend on the amount of time the
equipment will be used in the contractors
operations . If extensive use of equipment is
required the equipment is often purchased. If the
equipment is not to be used a limited amount of
time it is typically rented.

Nabil Dmaidi 275

Equipment costs

 When equipment is purchased, it is necessary to

determine the two types of the cost:
1) Ownership cost
2) Operating cost

Nabil Dmaidi 276

Equipment costs!
costs!(con.)

Ownership cost include :

 Investment
 Depreciation
 Taxes and insurance
Operating cost includes :
 Maintenance and repairs
 Fuel and lubricating oil

Nabil Dmaidi 277

Investment Costs
 The purchase of the construction equipment
requires a significant investment of money

 The money on purchase the equipment will

be either borrowed from a lender or it will
be taken from reserve fund of the
contractor.

Nabil Dmaidi 278

Depreciation Costs

 Depreciation is the loss in the value of equipment

resulting from use and age .

Nabil Dmaidi 279

Taxes and Insurance Costs

• The amount of the tax varies by geographic

location .
• The construction contractor must secure insurance
for owning and operating equipment.
• The cost of equipment insurance varies ,
depending on the type and size of equipment , and
the safety record of the contractor .

Nabil Dmaidi 280

Operating cost

 Operating cost occurs when the unit of equipment

is being used which include maintenance and
repairs, fuel, oil and lubricants.
 Maintenance and repairs may be defined as major
or minor, major are often included in ownership
costs and minor are included in operating costs.
 Fuel and lubricating oil should be considered as an
operating cost.

Nabil Dmaidi 281

Maintenance and repair costs

 The cost for maintenance and repairs include

costs for replacement part and labor required to
keep the equipments in good working conditions.
these costs vary with the type of equipment, skills
of operator, times of services.For Example: If an
excavator is used to excavate soft earth, the
replacement parts will be less than when the same
excavator is used to excavate rock.

Nabil Dmaidi 282

Fuel consumptions

 When operating under standard condition

(barometric pressure 29.9 inch.Hg and 68ºF)
gasoline engine will consume approximately 0.06
gal/(hp.hr) of fuel. And for diesel engine will
consume approximately 0.04 gal/(hp.hr) of fuel

Nabil Dmaidi 283

Lubricating oil consumed

 The quantity of lubricating oil consumed by an

engine will vary with the size of engine, the
condition of the pistons and the numbers of hours
between oil changes.

Nabil Dmaidi 284

Cost of rubber tires…..

 Many type of construction equipment use rubber

tires, whose life usually will not be the same as the
equipment on which they are used for example a
unit of equipment may have an expected useful
life of 6 years, but the tires may last only 2 years
so the new set of tires should be placed every 2
years, and the cost for this operation should be
estimated separately from the equipment.

Nabil Dmaidi 285

 [Chapter six]
Handling and transporting
material

Nabil Dmaidi 286

* Material suppliers or contractor deliver the
material to the job site the construction .

*The contractor using his or her laborers and

equipment to handling and transporting the
material..
material

Nabil Dmaidi 287

* The contractor can handling the material by
using truck .

Nabil Dmaidi 288

* Regardless of the
method used in the
transfer of materials
must take into account
the elements of time and
cost estimates and work
schedules of the project.

289 Nabil Dmaidi

* When estimating the time required by a
truck for around – trip .

* The estimator should divide the

round – trip into four element .

* These four elements define the cycle of

time .

Nabil Dmaidi 290

The element of the round – trip time

Return ,empty Load

Un load Haul

291 Nabil Dmaidi

 Hauling and Returning
Depend on

Speed of vehicle Distance

292 Nabil Dmaidi

 Speed of vehicle
Depend on

Traffic congestion Condition of road

293 Nabil Dmaidi

Example 1

Given 175 ton of sand with a density of 100 Ib/cf that must be
transported 7mi using a 12-cy dump truck. Tow laborers and
a driver, at a rate of 1.5 cy/hr each will load the truck .
Assume a haul speed of 30mph , return speed of 40mph , and
3min to dump the load . The cost of the truck is $25/hr ,the
driver is $18/hr , and laborers cost $15/hr each .

What is the total time , and the total cost for transporting the
material ?

Nabil Dmaidi 294

Solution :
Quantity of work :
Volume of sand =
(175 ton * 2000Ib/ton
2000Ib/ton ) / ( 100 Ib/cf * 27 cf/cy)
= 130 cy
Cycle time :
Load = 12
12cy
cy / ( 3*1.5cy/hr ) = 2.667
667hr
hr
Haul = 7mi / 30mph
30mph = 0.233hr
233hr
Dump = 3 min /(60
/(60min
min / hr ) = 0.05
05hr
hr
Return = 7mi / 40mph
40mph 175hr
= 0.175hr
Total cycle time = 3.125hr/trip
125hr/trip

Nabil Dmaidi 295

 Production rate :
Number of trips per hour = 1.0/(3.125hr/trip) = 0.32 trip/hr
Quantity hauled per trip = 12cy/trip * 0.32trips/hr
= 3.84 cy/hr
Assuming 45 min/hr as productivity ,
Production rate = 3.847cy/hr *(45/60) = 2.88cy/hr

Time :
Using 1 truck and 2 laborers = 130cy / (2.88cy/hr )
= 45.1hr

Nabil Dmaidi 296

Cost :

Truck = 45.1hr *1 truck * $25/hr = $1127.5

Driver = 45.1hr * 1 driver *$18/hr = $ 811.8
Laborers = 45.1* 2 laborers *$ 15/hr = $1353.00

Total cost = $3292.3

Nabil Dmaidi 297

 Example 2

Assuming a small tractor loader can be rented at cost of

$50
50/hr
/hr with load production rate of 95 cy/ hr .The loader
operation costs $21
$21/hr
/hr .Assuming the cost of transporting
the loader to the job is $400
$400..

What is the total time , and the total cost for transporting the
175 ton of sand ?

Nabil Dmaidi 298

Solution:

Quantity of work :
Volume of sand =
(175 ton * 2000Ib/ton
2000Ib/ton ) / ( 100 Ib/cf * 27 cf/cy)
= 130cy
130cy
Cycle time :
Load = 12
12cy
cy / ( 95 cy/hr ) = 0.126
126hr
hr
Haul = 7mi / 30mph
30mph = 0.233hr
233hr
Dump = 3 min /(60
/(60min
min / hr ) = 0.05
05hr
hr
Return = 7mi / 40mph
40mph = 0.175hr
175hr

Total cycle time = 0.584hr/trip

584hr/trip

Nabil Dmaidi 299

Production rate :
Number of trips per hour = 1.0/(0.584hr/trip) = 1.71trip/hr
Quantity hauled per trip = 12cy/trip * 1.71rips/hr
= 20.5cy/hr
Assuming 45 min/hr as productivity ,
Production rate = 20.5cy/hr *(45/60) = 15.4cy/hr

Time :
Using 1 truck and 2 laborers = 130cy / (15.4cy/hr )
= 8.4hr

Nabil Dmaidi 300

Cost :
Loader = 8.4 hr * $50/hr = $420.00
Operator = 8.4 hr * $21/hr = $176.4
Truck = 8.4hr *1 truck * $25/hr = $210
Driver = 8.4hr * 1 driver *$18/hr = $ 151.2

Laborers and equipment = $ 957.60

Add transporting loader = $ 400.00

Total cost = $1357.6

Nabil Dmaidi 301

The time and cost using the equipment
loader are actually lower than using the
laborers in example 1

Time cost money

Nabil Dmaidi 302

 Handling lumber

Lumber is usually loaded onto flatbed

trucks by a forklift or laborers at the
lumberyard and hauled to the job.
At the jobsite, the lumber is unloaded
and stacked according to size.

Nabil Dmaidi 303

A laborer should be able to handle
lumber at a rate of 2000 to 4000
board feet per hour (bf/hr). A
reasonable average rate should be
about 3000 bf/hr. for lumber one
board foot is 1in, thick by 12in, wide
by 1ft long.

Nabil Dmaidi 304

Trucks of the type generally used will haul 2 to 6 ton, corresponding to
1000 to 3000bf per load. The average speed will vary with the:

 Distance
 Type of road
 Traffic congestion
 Weather

Nabil Dmaidi 305

 Example 3

Estimate the cost of transporting 40000bf of

lumber from a lumberyard to a jobsite.
Trucks that can carry 2000bf per load will
transport the lumber , the jobsite is 2mi
from the lumberyard.
An examination of the haul road indicates an
average speed of 20mi/hr for the trucks ,
including necessary delays.

Nabil Dmaidi 306

Assume that a labor will handle 3000bf/hr of lumber, based on
using 2 workers, a truck driver and a laborer, and 1truck the
time and cost of the job can be determined as

Quantity of work:
lumber to be handled = 40000bf
Cycle time:
Assume both the truck driver and a labor will load a truck.
Rate of loading a truck = 2*3000 = 6000bf/hr
Time to load a truck = 2000/6000 = 0.33hr
Travel time = 4/20 = 0.2hr
Time to unload a truck = 2000/6000 = 0.33hr
Total cycle time = 0.86hr/trip

Nabil Dmaidi 307

Production rate:
Number of trips per hour =1/0.86=1.16trips/hr
Quantity hauled per trip =2000/1.16=2320bf/hr

Time:
Total time =40000/2320=17.2hr
An alternative method of determining the time to perform the work is
Number of truckloads required =40000/2000=20truckloads
Round-trip per load (cycle time)=0.86hr/trip
Total time for the job =20*0.86=17.2hr
Cost:
Truck ([email protected]$/hr)=432.5$
Truck driver ([email protected]$/hr)=312.52$
Laborer ([email protected]$/hr)=267.63$
Total cost =1012.65$
Cost per 1000bf =1012.65/40=25.32$

Nabil Dmaidi 308

 TRANSPORTING SAND AND GRAVEL

Sand and gravel are trip _ mind by companies and stockpiled for use
on construction projects . Sand is generally excavated from riverbeds
by draglines , loaded into trucks , and transported to a central
location
for later distribution to prospective buyers . Similarly , gravel is
trip _ mind from a rock quarry , crushed in a rock_ crushing
machine
screened and transported by trucks to a central gravel yard. Several
types of equipment , such as clamshells , front _ end loaders , or
portable conveyers can handle sand and gravel . Common laborers
can handle small quantities.

Nabil Dmaidi 309

 Handing and Transporting Bricks

Bricks are loaded and hauled to a jobsite by

forklifts or cranes fixed on trucks.
The capacity is 2.000 to 3.000 bricks per load.
At the jobsite the bricks are unloaded and 4-wheel
tractors are used.
Laborers with tongs are carrying 6-10 bricks
layer.
Each trip takes the labor 1/2 -1 minute.
This depends on the conditions at each project.

Nabil Dmaidi 310

 Example 4

Estimate the time and cost of hauling 60.000

bricks from the brickyard of a supplier to a
jobsite 15 mi away .each truck haul 3000
brick , travel at 40 mph loaded and 50 mph
empty , 3 laborer load the truck another 3
unloaded it , assume each laborer carry 8
brick at 3/4 min per trip .

Nabil Dmaidi 311

Quantity of work:
Material to be transported = 60.000 bricks

Production rate of laborers:

Laborers: 3 workers * 8brigk /trip/3/4 min per trip = 32
bricks / min.

Rate of loading a truck: 32 bricks / min * (60 min / hr)

= 1.920 bricks /* hr.

Nabil Dmaidi 312

Cycle time:

Loading truck: 3.000 bricks / 1.920 bricks / hr = 1.56

hr
Hauling to jobsite: 15 mi / 40 mph = 0.38 hr

Unloading truck: 3.000 bricks / 1.920 bricks / 1.920

bricks / hr = 1.56 hr
Returning to yard: 15 mi / 50 mph = 0.30 hr
_______
Total cycle time = 3.80 hr / trip

Nabil Dmaidi 313

Production rate of construction operation:
Number of trips per hour: 1.0 / (3.80 hr / trip)
= 0.26 trips / hr

Quantity hauled per trip : 3.000 bricks / trip * 0.26 trip /

hr = 780 bricks / hr
Required number of trucks to haul 1.920 bricks / h
=1.920 / 780 = 2.5
It will be necessary to use either 2 or 3 trucks.

Nabil Dmaidi 314

 Unloading And Hauling Cast Iron Pipe

The total labor crew will consist of the following

persons :-
At the loading site :-
1-crane operator
2- laborers with the crane
3- laborers on the truck
At the unloading site:-
1-Tracttor operator
2- laborers helping to unload pipe

Nabil Dmaidi 315

Any cost of moving the equipment to the job and back
to the corage yard should be prorated to the total
length of pipe handled, and added to the unit cost just
determined to obtain the total cost per unit length

Nabil Dmaidi 316

 Example 5

 Determine the number of trucks and the

direct cost per foot for transporting the pipe.
 Cycle time for (1 )truck:
 Loading atruck:14*3 min/joint=42 min/60
=0.70hr
 Hauling to the job:5 min/25 mph
=0.20hr

Nabil Dmaidi 317

 Unloading a truck:14 joints*3 min/joint=42
min/60 min/hour =0.70hr
 Returning to the supplier: 5 min/30 mph
=o.17hr
 Total cycle time =1.77

Nabil Dmaidi 318

 Production rates:
 Number of trips per hour:1.0/(1.77
hr/trip)=0.56 trips/hr
 Number of joints hauled per hour per truck:
0.56hr/trip*14joints/trip=7.9 joints/hr
 Number of joints unloaded per hour:14
joints/0.7 hr=20 joints/hr

Nabil Dmaidi 319

 Number of truck required:
 Required number of
trucks=(20joints/hr/7.9joints/hr)=2.5
 An alternative solution is (total cycle
time)(load time)=1.77/0.70=2.5
 Hourly cost of labor and equipments: using
3 trucks the hourly cost for labor and
equipment for this job will be
Nabil Dmaidi 320
 Crane: 1 hr @ $73.40/hr =$73.40
 Operator:1 hr @ $21.6/hr = 21.67
 Trucks: 1 hr*3 trucks @ $34.30/hr =
102.90
 Trucks drivers: 1 hr*3 drivers @ $15.56/hr
=93.36

Nabil Dmaidi 321

 Foreman: 1 hr @ $2.5.00/hr
=25.00
 Total crew cost =$370.84/hr
 Cost per lineal foot
$370.84/hr)/(20joints/hr*18 ft/joints)
=1.03/ft

Nabil Dmaidi 322

 [Chapter Seven]

Earth work and Excavation

Nabil Dmaidi 323

Most projects involve excavation to some
extent.

It may be few cubic yards for footings and

trenches or may be millions of cubic yards
for large earth-filled dams

Nabil Dmaidi 324

 Job factors
Management factors

 Job factors:
Job factors involve:
* Type and classification of soil
* extent of water present
* Weather conditions
* Freedom of workers and equipment to operate
on the job.
* Size of the job
* Length of haul for disposal

Nabil Dmaidi 325

 Evaluate the soil investigation report
 Visit the job site
 Study the specifications and plans

Now…………!
The contractor can determine time and cost of
the work that he has to do.

Nabil Dmaidi 326

  Management factors:
These factors involve:
 Organizing for the job
 Maintaining good morale(‫ )اﻟﺮوح اﻟﻤﻌﻨﻮﯾﺔ‬among workers
 Selecting and using suitable equipment and construction
methods.
 Exercising care in servicing(‫ )ﺗﺼﻠﯿﺢ‬equipment
 Establishing good field supervisory personnel

Nabil Dmaidi 327

 Hand digging and shoveling for small jobs.

 Excavation done by backhoes ,front shovel

Draglines, clamshells, scrapers, bulldozers,
Loaders, trenching machines, boring
machines, and dredges.

Nabil Dmaidi 328

Nabil Dmaidi 329
Nabil Dmaidi 330
Nabil Dmaidi 331
Nabil Dmaidi 332
Nabil Dmaidi 333
Nabil Dmaidi 334
Nabil Dmaidi 335
It depends on:
1. Type of soil
2. job-site conditions
3. Depth of excavation
4. The amount of ground water in the
construction area
5. The space available for the
equipment.
Nabil Dmaidi 336
 To excavate water way channel where
extensive water is present we use:

A dragline

Nabil Dmaidi 337

 To excavate rock material that have been
loosened in the excavation pit

A front shovel

Nabil Dmaidi 338

 The soil is excavated from its natural state
Placed in hauling unit
And is transported to the disposal area
The earth material can be measured as excavated, hauled, or
compacted
For example:
1cy of soil that is excavated from the ground may occupy 1.25 cy
after it is loosened and placed in the hauling unit , after the soil is
compacted in place may occupy .9 cy.
Nabil Dmaidi 339
 swell, happens when the soil is excavated
from the earth so its volume will increase
and weight per unit volume will decrease.

 Shrinkage, happens when the soil is

compacted with compaction equipment , so
the volume will decrease and weight per
unit volume will increase.

Nabil Dmaidi 340

L= (1+Sw/100)*B
L= (1-Sh/100)*B

Sw: percentage of swell

Sh: percentage of shrinkage
L: volume of loose soil
B:volume of undisturbed soil
c:volume of compacted soil

Nabil Dmaidi 341

Generally, it’s preferable to use excavating
equipment instead of excavating by
laborers, but at some job sites the
space is not sufficient for equipment to
operate.
Or in area with old or ancient buildings
Or if there are water networks or telephone
lines or any infrastructure element near to
surface.
Nabil Dmaidi 342
Trenching machine is used to make trenches in the
ground that required for telephone lines, water
pipes, or electricity lines.
These machines can be purchased or rented.
Economically, even though it may be economical to
excavate short sections of shallow trenches with
hand labor, trenching machine is more economical
for larger jobs.

Nabil Dmaidi 343

But,
Savings in excavating costs resulting from
using machine as compared with hand
excavating must be sufficient to offset the
cost of transporting the machine to the job
and back to the storage after the work is
complete

Nabil Dmaidi 344

Nabil Dmaidi 345
Wheel –type trenching machines

Nabil Dmaidi 346

 the dragline is used for excavating for drainage channels and
levees where water is present.
 It can operate on wet ground and can dig earth out of pits
containing water ,because it not have to go into the pit or hole to
excavate.
 The dragline is designed to operate below the level of the machine.
 It preferred when earth is removed from a ditch,canal,or pit
containing, and cannot excavate rock.
 it is possible to use a dragline with a long boom to dispose of the
material in one operation if the material can be deposited along
the canal or near the pit. this eliminates the need for hauling units,
this eliminates the need for hauling units, thus reducing the cost of
handling the material.

Nabil Dmaidi 347

Nabil Dmaidi 348
 Clamshells are used primarily for handling loose materials such
as loam ,sand ,gravel, and crushed stone.
 They are also used for removing material from pier foundations,
sewer manholes, or sheet –lined trenches.
 They are especially suited for lifting materials vertically from
one location to another ,such as depositing material in hoppers
and overhead bins, they are not effective in loosening solid
earth, such as compacted earth, clay, and other solid materials.
 The output of the clamshell is affected by looseness of the
materials being handled ,type of material, height of lift, angle of
swing ,method of disposing of the materials, and skill of
operator.

Nabil Dmaidi 349

 The are two basic types of hydraulic excavators, depending
on their type of digging action.
 hydraulic excavators that have their digging action in an
upward direction are called front shovels, and that have
their digging action in downward are called by several
names, such as hoe, backhoe, or trackhoe.
 FRONT SHOVELS
 Front shovels maneuver on tracks, similar to bulldozers,
because they are used mostly in pit excavation of rock
quarries.

Nabil Dmaidi 350

Nabil Dmaidi 351
 They are excavating machines that can handle all classes of
earth without prior loosening, but in excavating solid rock
it is necessary to loosen the rock first , usually by drilling
holes and discharging explosives in them.
 in estimating the output of a shovel, it is necessary to know
the class of earth to be excavated, the height of cut, the
ease with which hauling equipment can approach the
shovel, the angle of swing from digging to emptying the
bucket, and the size of the bucket.

Nabil Dmaidi 352

Hauling Excavated Materials :

Any project of different type we needed to

excavation and this part is importance to
calculate time and cost .

To explain what rode down we have example

touchable .

Nabil Dmaidi 353

Example :

land in JNIEAD reign that have area = 300m2, the land shape is
triangle fig(1 ) we needed excavation to built muilty story
building ,the type of the soil is Sedimentary rocks

, we used CAT machine to excavation ,it excavated 6.5 m3/hr,

and the cost of 1 hr are 550 NIS .

Calculate the time and cost of excavation?

We known have 6-weel truck the capacity of it is 20 m3, and the

cost of one trip = 220 NIS ,and we working 10 hr in day .

Nabil Dmaidi 354

Nabil Dmaidi 355
Solution ;
The volume of cut =Volume of triangle shape = 1016 m3
# hr of CAT working = 1016/ 6.5= 156.4 hr .
#of day = 15,6 day .
# of truck trip = 1016 /20 =51 Trip .
Cost :
Cost of CAT = # of hr work cost of 1 hr =156.4 x 550=84920
NIS .
Cost of Truck trip =#of trip x cost of 1 trip = 51 X 220=11220
NIS .
Cost of CAT transport in truck = One way = 500 x1 =500 NIS.
The total cost = ∑ of all cost =84920 + 11220 + 500 = 96640 NIS

Nabil Dmaidi 356

Scrapers can be used for excavating and hauling earth for highway projects
Scrapers are capable of loading, hauling, and distributing the soil in the
compacted fill area

Nabil Dmaidi 357

 Production rate of a scraper depends on


 time to load
 accelerate and decelerate
 turn
 the haul distance must be known because of
 As the length of the haul distances increase , the production rate of a
scraper will depend on the time to haul and return.
 Estimate the cost of excavation by scraper for particular job.

Nabil Dmaidi 358

Before rock can be excavated it must be
broken into small pieces to be handled by
the excavating equipment. So we must
use drills.

Nabil Dmaidi 359

The type of drills are:
 jackhammers drills: used for holes up to
about 2.5 in in diameter and 15-18 ft deep.

 wagon drills: use for holes 2-4.5 in in

diameter and depth more than 40 ft.

 drifter drills: used for holes up to 4 in in

diameter it used for horizontal holes.

Nabil Dmaidi 360

 churn drills: used for holes up to 12 in in
diameter and more than 100 ft of depth.

 rotary drills: used for holes 3-8 in in

diameter and depth excess of 100 ft .

Nabil Dmaidi 361

 Always ANFO is used for explosives
ANFO is: Ammonium nitrate-fuel oil , blasting agents represent the largest
industrial explosive manufactured (in terms of quantity).
Dynamite is available in stick of varying sizes , which are placed in the
hole, it usually exploded by a blasting cap , which is detonated by
electric current.
The amount of ANFO required loosening rock depending on:
 Type of rock.
 Spacing of haul.
 Degree of breakage desired.

Nabil Dmaidi 362

 Items of cost in an operating drill is:
 Equipment and labor
Equipment cost will include:
1. The drill
2. Drill steel
3. Bits (‫)اﻟﻘﻄﻊ‬
4. Air compressor
5. Hose (‫)اﻟﺨﺮﻃﻮم‬

Nabil Dmaidi 363

 [Chapter Eight]
Highways & pavement

Nabil Dmaidi 364

Highways & pavement

Nabil Dmaidi 365

Clearing & Grubbing Land
 Its can be divided into several operations ,depending on:
 1.The type of vegetation to be removed.
 2. The type and condition of the soil and
topography.
 3 .The Amount of clearing required.
 4. The purpose of clearing.

Nabil Dmaidi 366

Cleaning Machine

Nabil Dmaidi 367

Purpose of clearing
 1. complete removal of all trees and stumps
including tree roots .
 2. removal all vegetation above the surface
only.
 3.disposal of the vegetation by staking and
burning it.

Nabil Dmaidi 368

Type of clearing :
 Light clearing : removal of vegetation up to
2 inch
 ( above ground level).
 Intermediate :for vegetation from (2-8 inch)
using bulldozer blade.
 Large : more than 8 inch using bulldozer
with special (excavate the earth around the
trees to cut the main roots)
Nabil Dmaidi 369
Rates of clearing land depend on
:
 Type and number and size of trees.
 Density of vegetation.
 Type of soil and topography .
 Rainfall.
 Type of equipment used and skill of
equipment.

Nabil Dmaidi 370

Production rate:-

 Production rate=width of cut(ft)

×speed(mph) ∕10

Nabil Dmaidi 371

Disposal of brash:-
 When brush is to be disposal of by burning ,
it should be piled in stacks and windrows
with a minimum amount of earth included.

Nabil Dmaidi 372

Demolition :-
 For remodels of buildings or replacement
of infrastructures (remove apportion or all
existing structure).
 the time and cost to perform this work is
difficult to estimate because there are many
factors that can effect to the work .

Nabil Dmaidi 373

For example :-
 Removal of an existing concrete pavement
depends on the thickness of slab.
 Amount of reinforcement
 Job condition
 Skills of operator
 Type and size of demolition equipment

Nabil Dmaidi 374

Type of pavements
 Flexible Pavements.

 Rigid Pavements

 Composite Pavements

Nabil Dmaidi 375

Types of flexible pavements
 Conventional Flexible Pavement

 Full-Depth Asphalt Pavement

 Contained Rock Asphalt Mats-CRAM

Nabil Dmaidi 376

 Concrete pavement joints

 Its common practice to install joints at regular intervals

to reduce the danger of irregular and unsightly cracks
across and along concrete pavements .

 Joints
 control the location of cracks .
 allow expansion and contraction of the concrete .
 and provide a method of separating concrete placement
in the construction operation.

Nabil Dmaidi 377

Types of pavement joints

 Construction joints

 Transverse joints

 Longitudinal joints

Nabil Dmaidi 378

Missing Contraction Joint
The middle lane contraction
joint was not sawed
resulting in a transverse
slab crack. The outer lanes
have proper contraction
joints and therefore, no
cracking

Nabil Dmaidi 379

Construction Joint

Nabil Dmaidi 380

Joint roller

Nabil Dmaidi 381

The cost of hot mix asphaltic
concrete
 The initial expense of setting up:
 A plant .
 The aggregates
 Liquid asphalt
 Burner fuel
 Electricity(if no generator is used
 Quality control
 All the labor and equipment costs associated with laying and
compacting the mix
 Additional costs which include site rent and and railroad spur for
delivery of aggregates and liquid asphalt

Nabil Dmaidi 382

Asphalt can be divided to:
 Cut-back asphalt

 Emulsified asphalt

 Asphalt cement

Nabil Dmaidi 383

Asphalt plants
 Hot –mix asphalt is produced in plants that
proportion the aggregates ,dry them and
combine them asphalt cement that has been
heated from 275f to 375 f

Nabil Dmaidi 384

The cost of concrete pavement place
includes

 The cost of fine-grading

 Sub grade
 Steel reinforcing (if required)
 Aggregate ,cement , mixing
 Placing , finishing and curing concrete

Nabil Dmaidi 385

The cost of Preparing the sub grade
for concrete pavements

We must calculate the cost of:

 Excavation
 Cleaning
 Compacting after the fine – grade is
complete

Nabil Dmaidi 386

Construction method used
 two methods are used to place concrete
pavements :

1) Side forms : is used for small projects ,as

city streets or parking lots of businesses .

2) Slips forms : commonly is used for large

project , such as long highway pavements or
airport runways.

Nabil Dmaidi 387

Placing concrete pavements
 After the fresh concrete arrives at the job
site ,it must be removed to its final position
without segregation of the mix and before it
has achieved an initial set
 For efficiency and economy the production
rate should be balanced between the batch
plate ,hauling units ,and the paving
equipment

Nabil Dmaidi 388

BATCHING AND HAULING
CONCRETE
 There are two types of concrete mixing
operations :

1) Central- batch concrete : used for projects

that required large volume of concrete .

2) Job – batch concrete :is typically used for

low –volume projects, such as streets city ,
and parking.

Nabil Dmaidi 389

For small paving projects
 The concrete may be placed from the chute
of the concrete truck into the hopper of the
paving machine that places the concrete
.labors hand finish the concrete .

Nabil Dmaidi 390

For large paving projects
 paving train of equipment is used to place
concrete pavements
a paving train consists of three types of
equipment :
 Concrete placer spreader .
 Slip -form paver.
 Tine and cure machine

Nabil Dmaidi 391

[Chapter Nine]

Foundations

Nabil Dmaidi 392

Foundations (Definition)

It is a part of the structure that support and

transmit (distribute) the loads from the structure to
the wider areas of the soil.

Nabil Dmaidi 393

Types of Foundations
Foundations

Shallow Foundations Deep Foundations

Footings Piles Drilled Shaft

May be Steel, Timber

or concrete

394 Nabil Dmaidi

Methods of construction

 (Footings): are constructed by excavating the soil

from the ground and then installing reinforced
concrete, usually at depth less than 5ft.

 (Piles): are driven into the ground by the hammer

of pile-driving equipment, and usually driven from
(30-200)ft, depends on the magnitude of the load
that comes from the structure.
Continue>>>

Nabil Dmaidi 395

Methods of construction (Cont.)

 (Drilled shaft): are installed by drilling

holes to depths (usually from(5-60)ft) in the
soils that have sufficient strength to support
the loads from the structure above the
foundation.

Nabil Dmaidi 396

Sheeting Trenches
 A trench is excavated into the soil to
construct continuous footing, if the earth is
so unstable that it must be restrained for the
full area of the wall of a trench, it will be
necessary to install a trench box.

Nabil Dmaidi 397

Pile-Diving equipment
 Equipment used to drive piles usually
consists of :
1. A truck-mounted or
2. Crawler_ mounted crane.
3. Leads.
4. A hammer.
5. And a source of compressed air or
6. Steam of drive the hammer .

Nabil Dmaidi 398

 Vc = π(ds)2 (Df-h) + π h (ds2 +dsdb + db2) 
4 12
Where :
Vc : total volume of concrete in the shaft, (cf)
Df : depth of foundation, (ft)
h:depth from the bottom of shaft to top of bell, (ft).
ds: diameter of shaft, (ft).
db: diameter of bell, (ft)
Nabil Dmaidi 399
 Chapter Ten

[Concrete Cost Analysis]

Nabil Dmaidi 400

 Concrete structure

Cost of concrete structures:-

1.Forms.
2.Concrete.
3. Reinforcing steel
4.Finishing,if required.
5.Curing.

Nabil Dmaidi 401

 Concrete

The cost of concrete includes:

Sand, aggregate, cement, water, admixtures, mixing,
transportation and placing the concrete.

Ready mix concrete cost depends on :

1- Size of the job
2- Location
3- Quality of concrete

Nabil Dmaidi 402

The quantities of materials for concrete :
the estimator should determine the cubic yard of each class of
concrete in the job. A reasonable amount should be induced for
waste, such as 10% loss for small job and 5% for big

 concrete structure are designed for concrete having specified

strengths, usually 28 days after it is placed in the structure. To
produce a concrete with a specified strength, it is common practice
to employ a commercial laboratory to design the mix.

Concrete crew includes a finisher and not more than five

laborers to place ,spread, vibrate and finish the surfaces

Nabil Dmaidi 403

The labor hours required to place concrete vary with:
1.Rate of delivery
2. type of structure
3.Location of structure
Three types of concrete :
1.Below ground
2.On the ground
3.Above the ground
Rate of pacing concrete

Table 10.11: labor-hours required to place concrete, hr/cy

Nabil Dmaidi 404

 Method of handling
Type of work
Direct chute Crane bucket Pumped

Continuous footings 0.3-0.4 0.6-0.8 0.4-0.5

Spread footings 0.6-0.7 1.0-1.3 0.6-0.8

Grade beams 0.3-0.4 0.5-0.7 0.3-0.4

Slabs on grade 0.3-0.4 0.5-0.6 0.4-0.5

walls 0.4-0.5 0.7-0.9 0.5-0.6

Beams and girders - 1.4-1.8 1.0-1.2

Columns - 1.1-1.3 0.6-0.8

Elevated slabs - 0.6-0.8 0.4-0.5

Nabil Dmaidi 405
 The light weight concrete is used when:

1.Strength is not a primary factor

2. Reduction in weight depends on the type of aggregate used
as example PERLITE Aggregate.

 Tilt up concrete walls are walls that are casted as slabs

horizontally then up lifted vertically

Advantages of tilt up walls:

1.Low cost of forms

2.Low cost of placing reinforcing steel
3.Low cost of placing concrete
Nabil Dmaidi 406
Forms for concrete structure
It is usually measured in square feet of contact of
area (SFCA).
-SFCA :is the surface area that concrete will be in
contact with the forms.
-Price of complicated shapes of forms is higher than
simple one because :-
1.Extra material.
2.Labour cost.
3.Reduced potential to reuse.
4.Low salvage value after use.
Nabil Dmaidi 407
-Lumbers economical when it is used only a few
times than steel or aluminum

-Cost of Material for forms includes:

1.The cost of form.
2.Finishing.
-Plywood or metal forms has low mark effect.
-The cost of forms included the cost of nails, bolts,
ties, labors ,erecting ,oil, removing &cleaning
&pour equipment like saw &drills.

Nabil Dmaidi 408

-Material used in forms are:-
1. Lumber.
2. Plywood.
3. Steel.
4. Aluminum
5. Composit.

Nabil Dmaidi 409

-Lumber is economical when it is used only a few
times than steel and aluminum

-Cost of Material for forms includes:

1.The cost of form.
2.Finishing.
-Play wood or metal forms has low mark effect.
-The cost of forms included the cost of nails, bolts,
ties, labors ,erecting ,oil, removing ,cleaning ,pour
equipment like saw &drills.

Nabil Dmaidi 410

There are three types of nails used:-

1.Common wire nails.

2.Box nails.
3.Double headed nails.

-The required of nails is taken as:-

10-20 lb/1000bf lumber

Nabil Dmaidi 411

 Forms liners are used to create any texture on the concrete
surface they are expensive to use depending on the type
selected.
 Factors that determine the amount of labor required:-
1.Size of the form.
2.Kind of material used .
3.Shape of structure.
4.Location of form
5.The extent to which prefabricated form panels or sections
can be used.
6.Rigidity of dimension requirements.
7.The extent to which the forms can be prefabricated in shop
&transported to the job.

Nabil Dmaidi 412

For prefabricated forms it is better to estimate
labor separately.

 Shape & kinds of forms:-

1. For on grade slab a side forms are fastened at the

perimeter

 Table (10.1)show quantites of play wood , lumber, form

ties &the labour-hours required for 100SFCA of wall
form:-

Nabil Dmaidi 413

 Labor making Labor- Making
Labor-
hour forms hr erecting

Wall Play Lumber Form Carpent Heiper Carpent Helper

height wood (bf) ties er er
(sf)

4 100--110
100 120--135
120 12 2 -2 . 5 1 . 5 -2 2 . 5 -3 2 -2 . 5

6 100--110
100 135--155
135 14 2-2.5 1.5-2 3-3.5 2.5-3

8 100--110
100 155--175
155 14 2-2.5 1.5-2 3.5-4 3-3.5

10 100--110
100 175--205
175 16 2-2.5 1.5-2 4-4.5 3.5-4

12 100--110
100 205--245
205 18 2-2.5 1.5-2 4.5-5 4-4.5

14 100--110
100 245--305
245 18 2-2.5 1.5-2 5-5.5 4.5-5

16 100--110
100 305--325
305 20 2-2.5 1.5-2 5.5-6 5-5.5
Nabil Dmaidi 414
2. Forms of columns are made of:-

1.Fiber tube ……….only once

2.Fiber glass……………4times use.
3.steel………..many times.

 Number of clumps depend on:-

1.Hieght.
2.Pressure of concrete.

Nabil Dmaidi 415

If it is not necessary to rebuild the forms for each use
,the estimator should separate the labor into 2 operations:-

1.Making the forms.

2.Erecting &removing them.

 Considerable saving can be achieved by reusing

concrete forms.

Nabil Dmaidi 416

 The opportunity to reuse forms is reduced when
multiply size of columns are required in a project.

 The cost to remake forms is higher than the saving in

concrete cost.

 Forms for drop panels are built of lumber and pay

wood, consisting of flat surfaces where as columns
capitals consist of cylindrical conical surface

Nabil Dmaidi 417

 3. above ground slab forms:

 The cost of forms varies with the thickness of the slab

and the height of the slab above the lower floor.

 The form builder has considerable freedom in selecting

the size and spacing of joist and stingers.

 The lumber required for metal pan construction consists

of centering strips, stringers, shores and braces.

Nabil Dmaidi 418

Metal or fiber glass patented forms are available from
commercial suppliers.

1.Metal pans are placed end to end to provide one way slab
action.
2.Fiberglass domes are available for forming a two-way floor
system (waffle slab).

When using commercial pans or domes the total quantity of

concrete is less than flat slab.

Contractors rent pans to an agreed price per square foot

per use for minimum number of uses.
Nabil Dmaidi 419
Approximate quantities of material and labor-hours required to
build, erect and remove 100 SFCA of metal-pan concrete floors
Ceiling Floor Lumber, bf Labor-hours
height, ft thickness,
Carpenter Helper
in.

12 10 120 3.5-4.0 4.0-4.5

12 130 4.0-4.5 4.5-5.0

14 140 4.0-4.5 4.5-5.0

14 10 130 3.5-4.0 4.0-4.5

12 140 4.0-4.5 4.5-5.0

14 150 4.1-4.5 4.5-5.0

16 10 140 3.5-4.0 4.0-4.5

12 150 4.0-4.5 4.5-5.0

10 160Dmaidi
Nabil 4.0-4.5 4.5-5.0 420
 4. beams shores and scaffolding:
Vertical shores or posts and scaffolding are used to
support concrete beams girders, floor slabs, roof slabs,
bridge decks, and other members until the concrete has
gained sufficient strength to be self-supporting.

Many types and sized shoring and scaffolding are

available and made from wood, steel are combination of
the two and aluminum.

Nabil Dmaidi 421

Tabular scaffolding is available to support high and heavy
loads.

The contractor often rents scaffolding for a particular job.

For concrete beam forms the amount of time for carpenters

is significantly greater and for helpers compares to walls and
column.

The quantities of material and labor-hours to build 100 SFCA of forms

for concrete beams of various sizes are showing table 10.3

Nabil Dmaidi 422

Approximate quantities of material and labor-hours required for 100 SFCA of
concrete beams.
Beam Number of Plywood, Lumber, Form ties Labor- hours Labor- hours
width,in. uses sf bf
carpenter helper

12 1 100-110 260-290 12 13.5-14.5 3.0-4.0

2 45-55 135-150 12 11.5-12.5 2.5-3.5

3 35-45 105-115 12 9.5-10.5 2.0-3.0

4 25-35 90-100 12 8.5-9.5 1.5-2.5

18 1 100-110 210-235 15 12.5-13.5 2.5-3.5

2 50-60 120-135 15 10.5-11.5 2.0-3.0

3 35-45 100-110 15 9.5-10.5 1.5-2.5

4 25-35 75-85 15 9.0-10.0 1.5-2.5

24 1 100-110 190-210 20 11.5-12.5 2.5-3.5

2 55-65 100-110 20 10.5-11.5 2.5-3.0

3 35-45 75-85 20 9.5-10.5 2.0-2.5

4 25-35 65-70 20 9.0-10.0 2.0-2.5

Nabil Dmaidi 423
The costs per unit of volume or area varies greatly in
concrete stairs depending on the:

1.Length of tread
2.Width of tread
3.The hight of the rise
4.The shape of the supporting floor for the shores

Two carpenters should be used to build the forms for

the stairs, each one should fabricate and install about 25
bf/hr of lumber.

Nabil Dmaidi 424

REINFORCING STEEL

-The unit of measure for reinforcing steel is

pound of weight.
-Types of Reinforcing steel:-
1.Deformed
→ bars
→

Lb,Ton. →

2.Welded wire fabric

Sq Ft or Lb →

Nabil Dmaidi 425

 – The most important properties of Reinforcing steel
are:-
Size ,Area ,weight

-Available strength 40Ksi,50,75,

-Epoxy-coated bars are used when deicing salts or

sea water can effect the bars
(Table 10.6)
Shows size& weights of reinforcing steel
Nabil Dmaidi 426
Bar no. Diameter,in Area,in^2
Area,in^ 2 weight,lb/ft

3 0.375 0.11 0.376

4 0.5 0.20 0.668

5 0.625 0.31 1.043

6 0.75 0.44 1.502

7 0.875 0.60 2.044

8 1 0.79 2.670

9 1.128 1.00 3.400

10 1.27 1.27 4.303

11 1.41 1.56 5.313

14 1.693 2.25 7.650

18 2.257 Nabil Dmaidi 4.00 13..600

13 427
 -Rebar schedule:
Each size and length or bars is listed separately
for each project

(Table 10.7)

Nabil Dmaidi 428

Bar mark No. Bar size Length Weight Total weight
required Lb/ft

A 120 4 30ft
30 ft 0in .068 2405

B 56 4 20ft
20 ft 0in .668 749
C 116 5 24ft
24 ft 0in 1.043 2900
D 42 6 12ft
12 ft 4in 1.502 780

E 36 6 14ft
14 ft 8in 1.502 794
F 28 6 19ft
19 ft 8in 1.502 826
G 16 7 22ft
22 ft 3in 2.044 604
H 72 7 22ft
22 ft 3in 2.044 3280
I 84 7 18ft
18 ft 8in 2.044 3200
J 24 8 24ft
24 ft 0in 2.670 1535
K 18 8 21ft
21 ft 6in 2.670 1037

Nabil Dmaidi 429

And each size and length should be assigned a number or
a letter of the alphabet (bar marks).
To estimate the cost or R.S total weight of all size and
length should be found
-Factors that affected the cost of R.S delivered a
project:
1.Base cost of bars at the fabricating shop.
2.Cost of preparing shop drawings.
3.Cost of handling ,cutting ,bending ,etc.
4.Cost of shop over head and profit.
5.Cost of transporting from the shop to the job.
6.Cost of specialties ,such as spacers ,saddles ,chairs ,ties
,etc.

Nabil Dmaidi 430

 -The rates at which workers will place rein forcing steel
bars will vary with these factors:-
1.Size &length of bars.
2.Shapes of bars.
3.Complexity of structure.
4.Distance &height the steel must be carried.
5.Allowable tolerance in spacing bars.
6.Extent of tying required.
7.Skill of the workers.

Nabil Dmaidi 431

Table 10.8:rates of placing reinforcing steel

Bar size
Type of work 0.625 and less 0.75 and over
Beams &girders 19--21
19 11--12
11
Columns 20--22
20 13--15
13
Elevated slabs 10--12
10 10--12
10
Footings 14--16
14 8-9
Slab on grade 13--15
13 13--15
13
Spirals & stirrups 12--14
12 12--14
12
Walls 10--11
10 8-9

Nabil Dmaidi 432

*For projects like sidewalls ,pavements, floors canal
linings it is more economical to use welded wire fabric.
*It is made of cold drawn steel wire electrically welded at
intersection.
*Quantity equal are ….to be reinforced with 5-10% of the
area.
*is placed by unrolling it over the area, cutting it to a
required length ,lapping the edges and ends and tying it
at equal spaces
 Rate:-
Regular shape 0.25hr/100sl
Irregular 0.5hr/100sl

Nabil Dmaidi 433

[Chapter Eleven]

Nabil Dmaidi 434

Steel structures used for :
 Multistory Building
 Theaters
 Industrial Building
 Roof Truss
 Stadium
 Bridges
 Others

Nabil Dmaidi 435 435

Usually steel structures given in standard form such as:

W- section
C- channel
Tubes
Plates
Angles

Nabil Dmaidi 436 436

Nabil Dmaidi 437 437
 Unit of measurement

Weight is usually used as unit of

Measurement In steel structures

Nabil Dmaidi 438

1) Cost of Standard Structural Shapes

2) Cost of preparing Drawing

3) Cost of Fabricating the steel shapes

into finished members

4) Cost of transporting the steel

Nabil Dmaidi 439

 Cost of erecting the steel

6) Cost of field painting the steel structure

7) Cost of job over head , general overhead

Insurances , taxes and profit

Nabil Dmaidi 440

Materials cost is function of :

1) Steel Grade
2) Shape
3) Weight
4) Total quantity

Nabil Dmaidi 441

 The engineer or architect does not furnish
drawing in sufficient details

• The steel suppliers must prepare shop drawing

before the steel can be fabricated

* Steel suppliers maintain engineering and

drafting departments which prepare shop drawing
in sufficient details to enable their shops to
fabricate the membersNabil Dmaidi 442
Fabricating includes :
Cutting
Punching
Milling
Planning
marking

Nabil Dmaidi 443

Fabricating structural steel function of operational
performed
* size of member
* Operations that can be duplicated
on similar members

Nabil Dmaidi 444

The estimator should determine the fright or
truck cost per unit weight for the particular
project to include the correct amount in the
estimate

Nabil Dmaidi 445

1) The columns are erected first
2) The beams are installed to the building

Nabil Dmaidi 446

Equipment for Erection structural
steel
 Depends on :

 Type of structure
 Size
 Height
 Location

Nabil Dmaidi 447

Types of Connection
 Types of Connection & how to install
connection depend on the design criteria

Nabil Dmaidi 448

Connections
 Bolted Connections:
 it is more easy but increase construction
cost

 Welded Connections:
 more difficult and needs experience

Nabil Dmaidi 449

Field Painting Structural Steel
 Some times necessary to perform limited
field painting
 The cost will vary depending of
 Type of structure
 Size
 Access to member

Nabil Dmaidi 450

Member of structure square ft\ton
Beam 200-250
Girder 125-200
columns 200-250
Roof Truss 275-350
Bridge 200-250

Nabil Dmaidi 451

Nabil Dmaidi 452
Nabil Dmaidi 453
Number of pieces Description Length Weight Total
each Lb/lin ft weight ,
lb
18 Columns W10x89 24 ft 9 in 89 39,649
12 Columns W10x112 24 ft 9in 112 33,264

18 Columns W10x54 21 ft 6in 54 20,898

12 Columns W10x72 21 ft 6in 72 18,576
Total weight of 112,387
columns
30 16x16x1 ½-in base 3,267
plates
120 6x18x3/4 –in splice p 2,763

120 3x3x(3/8) 0 ft 8 in 7.2 575

420 21/2x2x(3/16) 0 ft 8in 2.75 577

Total weight of 7,182

column details Nabil Dmaidi 454
 68 Beams W14x48 17 ft 6in 48 57,120

54 Beams W14x34 19 ft 9 in 34 36,261

24 Beams W14x32 16 ft 6in 32 12,672

18 Beams W14x28 22 ft 6 in 28 11,340

Total weight of beams 117,393

492 3x3x(3/8) 1 ft 0 in 7.2 3,542

164 3x3x(1/4) 0 ft 10 in 4.9 670

Total weight of angles 4,212

Total weight of fabricated 241,174

steel ,lb
Total weight , tons 120,59
Nabil Dmaidi 455
The Total cost will be :

Nabil Dmaidi 456

Nabil Dmaidi 457
Nabil Dmaidi 458
Nabil Dmaidi 459
[Chapter Fourteen]
Masonry

Nabil Dmaidi 460

Masonry

Nabil Dmaidi 461

 Masonry Units

1.Masonry units that are commonly used for

construction include brick, concrete masonry
units , and stone, either natural or artificial.

2.Masonry units are available in several sizes,

grades and textures.

Nabil Dmaidi 462

 Estimating the cost
Of masonry

1.In estimating the cost of a structure to be

constructed entirely or partly of masonry units
, the estimator should determine separately and
cost of each kind of unit required.

2.The quantities of masonry units should

include an allowance for waste .
Nabil Dmaidi 463
 Mortar

1.Mortar for masonry units is made by mixing Portland cement

with lime or masonry cement , and sand.

2.Mortar is designated as ASTM types M,S,N,O and Pl.

The M type is high-
high-strength, The S type used for structures
requiring high flexural bond strength , The N type mortar is
used in medium-
medium-strength, The type O is used in low strength

NOTE: If fine sand is used the workability of the mortar will be

much better than if coarse sand is used.

Nabil Dmaidi 464

 Pattern bonds

Types of pattern bonds :

Nabil Dmaidi 465

Types of joints for brick masonry

Nabil Dmaidi 466

 Cleaning brick masonry

Brick masonry can be cleaned by several

methods , including bucket and brush by hand
, high pressure water cleaning , or
sandblasting.

Nabil Dmaidi 467

 Labor laying bricks

The labor-
labor-hours required to lay bricks vary
with a number of factors, such as the quality of
work, type of bricks, kind of mortar used, shape
of the walls, kind of bond pattern used, and
weather conditions.

Nabil Dmaidi 468

 Concrete masonry units

Concrete masonry units (CMUs) are concrete

blocks that are manufactured in various sizes
from Portland cement, sand, and gravel, or
cement and lightweight aggregates

Nabil Dmaidi 469

 Stone masonry

Several kinds of stone, both natural and

artificial are used in structures such as
buildings, walls,….etc. Natural stones used for
construction includes
sandstone,limestone,dolomite,marble,….etc.

Nabil Dmaidi 470

 Cost of stone

The cost of stone depends so much with kind

of stone, methods of cutting stone, and location
of use.

Nabil Dmaidi 471

[Chapter Seventeen]

Carpentry

Nabil Dmaidi 472

CARPENTRY

 Carpentry deals with the processing of

wood to obtain desired shapes and sizes

Nabil Dmaidi 473

 Hand tools
Large number of hand tools are used for
processing the wood
1. Marking and measuring tools
2. Cutting and parting tools
3. Boring tools
4. Striking tools
5. Holding tools

Nabil Dmaidi 474

Measuring tools

 Steel rule or engineer’s rule

 Wooden folding rule
 Steel tape

Nabil Dmaidi 475

Steel rule

Nabil Dmaidi 476

Wooden folding rule

Nabil Dmaidi 477

Steel tape

Nabil Dmaidi 478

Marking tools

Important marking tools are

1. Straight edge
2. Try square
3. Marking gauge
4. Divider
5. Marking knife

Nabil Dmaidi 479

Straight edge

Nabil Dmaidi 480

Try square

Nabil Dmaidi 481

 Gauges
 Gauges are used for cutting parallel lines at a
given distance from the edge
Types of gauges
1. Marling gauge 7. divider
2. Mortise gauge 8. Caliper
3. Panel gauge 9. spirit level
4. Cutting gauge 10.
5. Wing compass
6. Trammel

Nabil Dmaidi 482

Panel gauge

 It is similar to marking gauge, but it has a long

stem which enables to mark the width of wide
boards such as door panels

Nabil Dmaidi 483

Cutting gauge

 Cutting gauge similar to marking gauge but

it has sharp cutter instead of a pin
 It is used to cut lines across the grains
 It is particularly adapted for dovetail joints

Nabil Dmaidi 484

Hand saw
Hand saw is used for cutting wood to the desired
shape and size
Parts of hand saw
1. Handle
2. Blade
Specifications of hand saw
1. Length of blade– 600mm to 700mm
2. Pitch--- 2.5mm to 8mm

Nabil Dmaidi 485

Types of hand saw
1. Rip saw
2. Cross-cut saw
3. Panel saw
4. Tenon saw
5. Dovetail saw
6. Bow saw
7. Coping saw
8. Key hole saw
9. Compass saw

Nabil Dmaidi 486

Nabil Dmaidi 487
 chisels
 Chisels are used for cutting excess wood for
making joints
 They are also used for shaping different
profiles in wood work
Parts of chisels
1.handle 2.blade
3.tang 4.shoulder
5.neck

Nabil Dmaidi 488

Firmer
 Capable of doing heavy work
 Used for joining and shaping the wood
 Blade rectangular section with beveled edge
 Length of blade– 125mm
 Width—3 to 50mm

Nabil Dmaidi 489

Nabil Dmaidi 490
Types of planes
1. Jack plane
(a) wooden (b)metal
2. Trying plane
3. Smoothing plane
4. Rebate plane
5. Plough plane
6. Router plane
7. Spoke shave
8. Special planes

Nabil Dmaidi 491

 [Chapter Twenty]
Water distribution systems

Nabil Dmaidi 492

Water distribution systems

The cost of water distribution systems will

include the material ,equipment ,labor ,and
supervision to accomplish some or all of the
following
1.clear the right –of –way for the trench
2. remove and replace pavement
3. relocate utility lines
4. install pipe
5. excavate and backfill trenches
6. install fittings Nabil Dmaidi 493
7. install valves and boxes
8. install fire hydrants
9. install service connection ,meter,and
meter boxes
10. drill holes under under roads and
pavement, and install casings for
pipeline
11. test and disinfect water pipe

Nabil Dmaidi 494

Pipelines
 The following types of pipes are use for water systems :
 1.cast iron
 a. bell and spigot
 b. mechanical joint
 c. push –on joint, or gasket –seal joint
 d. threaded
 e. cement-lined
 2. steel
 a. threaded, black or galvanized
 b. welded, plain or cement-lined
 3. reinforced concrete
 a. prestressed
 b. nonprestressed
 4. brass and copper
 5. lead
 6. plastic Nabil Dmaidi 495
Tests of water pipes
 Specifications usually require the contractor to
subject the water pipe to a hydro-static test after it
has been to backfilling the trenches if any joints
show excessive leakage they must be recalled it is
common practice to lay several blocks of pipe
install a valve temporarily and subject the section
to a test if a test satisfies the specifications the
valve is removed and the trench is repeated until
the system is completed.

Nabil Dmaidi 496

Cost of cutting cast-iron pipe
 Cast-iron pipe may be cut with chisels or with chisels or with
chain cutters chisel cutting is done by two or more laborers
using a steel chisel with wood handle and a 6 to8-ib hammer
chain cutters can be operated by hand for pipes up to 12 in
diameter but for larger pipes a power-driven cutter should be
used.
 Machines are available that can cut 10-to60-in-diameter pipe it
requires 60 to 70 cf/min of air at a pressure of of 85 ib/sq in
.the saw is a portable milling machine on wheels which travels
around the pipe under two silent type chains which hold the
machine to the pipe and act as a flexible ring gear for the feed
sprockets the machine moves while the chins remain stationary
a complete cut is made in I revolution (r) around the pipe it will
require I min of cutting time for each inch of pipe diameter thus
a 24-in.pipe is cut in24 min of cutting time an experienced
crew of two individuals can install the machine on a pipe in
approximately 15 min. Nabil Dmaidi 497
The total time allowed for cutting cast-iron pipe
should include measuring supporting on skids if
necessary and cutting in cutting pipe larger than 24
to 30 in it may be necessary to use a crane to handle
the pipe table 23.4 gives the approximate time in
hours required to cut various sizes of cast-iron pipe
the time given includes measuring setting up and
cutting for average conditions .

Nabil Dmaidi 498

 Labor required to lay cast-iron pipe

 The installation of bell-and-spigot cast-iron pipe will include some of or all the
following operation:
 1. cutting the pipe if necessary
 2. lowering the pipe into the ball
 3. inserting the spigot into the bell
 4. yarning the bell
 5. attaching a runner and pouring the lead
 6. removing the runner and caulking the lead
 Each joint of pipe is lowered into the trench by hand or with an excavator crane
tractor-mounted side boom or other suitable equipment after the spigot end is
forced into the bell to full depth two or more strands of yarning which completely
encircle the pipe are caulked into the bell to center the pipe and to prevent molten
lead from flowing into the pipe a runner is placed around the pipe against the bell
with an opening near the top to enable molten lead to be poured into the joint the
lead for a joint should be poured in one continuous operation without interruption
after the lead cools to the temperature of the pipe the runner is removed the lead is
caulked by hand or with a pneumatic caulking hammer.

Nabil Dmaidi 499

 The size of crew required to lay the pipe and the
rate of laying will vary considerably with the
following factors :
 1. Class of soil
 2.Extent of groundwater present
 3. Depth of trench
 4.Extent of shoring required
 5. Extent of obstruction such as utilities ,sidewalks
,pavement
 6. Size of pipe
 7. Method of lowering pipe into trench
 8. Extent of required for fittings and valves
Nabil Dmaidi 500
 Often ,water lines are installed above sewer lines. The depth of water lines are placed below
 The frost line. Since water lines since water lines are under pressure they can be routed up or
down rather than following grade to ensure gravity flow like sewer lines.
 The crew required to dig the trenches lay the pipe and backfill the trenches for 12-in.pipe
furnished in 18-ft lengths using a tractor-mounted side boom to lower the pipe into the trench
In trench 3 to 6 ft deep in firm earth with no groundwater and no shoring needed might
include.
 Trenching machine operator
 Laborers on bell holes
 Tractor operator
 Laborers on pipe
 Workers centering pipe and installing yarning
 1. person melting and supplying lead
 1. person installing runners and pouring lead
 2. workers caulking lead joints by hand
 1. driver for utility truck
 1. bulldozer operator backfilling trench
 1. foreman
 A crew should install four to six joints per hour either pipe or fitting the length of pipe laid
will vary from 72 to 108 ft/hr 90 ft/hr a fair average for the conditions specified .
 Table 23.5 gives representative labor-hours required to lay cast-iron pipe in trenches 3 to 6 ft
deep in firm soil with litter or on shoring required and no groundwater using caulked lead
joints for pipe laid under other conditions the labor –hours should be altered to fit the
conditions for the particular project if a crane is used to lower the pipe replace the tractor
operator with a crane operator.

Nabil Dmaidi 501

 The crew might include:
 1 trenching machine operator
 2 laborers cleaning trench and digging bell holes
 1 tractor operator lowering pipe into trench
 1 laborer assisting tractor operator
 2 laborers in trench handling pipe
 1 pipe layer with pipe and fittings
 2 laborers backfilling trench
 1 laborer operating tamper
 1 bulldozer operator backfilling trench
 1 foreman
 In some locations it may by necessary to reclassify some of the
individuals of the crew into semiskilled or skilled ratings .

Nabil Dmaidi 502

 [Chapter 24]

Total Cost of Engineering Projects

Nabil Dmaidi 503

The total cost to the owner may include:

1. Land, right of way, easements.

2. Legal expense.
3. Bond expense, or cost of obtaining money to finance the
project.
4. Cost of construction.
5. Engineering and/or architect’s expense.
6. Interest during construction.
7. Contingencies.

Nabil Dmaidi 504

Cost of Land, Right of Way, and Easements

 The owner of the project must provide money to

purchase land or to use land in constructing an
engineering project.

 Easement is the right for which the owner of the

project may pay the owner of the land to maintain
certain facilities (as construction of pipelines,
power lines, telephone lines, etc…) without
actually purchasing it.

Nabil Dmaidi 505

Legal Expenses

They are the legal fees paid for the following

services:
1. Acquisition of land and easements.
2. Printing and obtaining approval of bonds for:
a. providing money to finance the project
b. assistance to a private corporation.
3. employment.

Nabil Dmaidi 506

Bond Expense

Charging to the project the costs of the following

services:
1. Printing
2. Registering
3. And selling the bonds.
That is usually done through a qualified underwriting
broker, who charges a fee for these services.

Nabil Dmaidi 507

Cost of Construction

 The cost of construction a project is usually an

estimate only, made in advance of receiving bids
from contractors, prepared by an engineer or an
architect.
 The estimate may be a lump-sum cost, or a unit-
price estimate.

Nabil Dmaidi 508

Engineering Expense

 It is the cost of the following engineering

services:
1. Surveys and studies.
2. Prepare the plans and specifications.
3. Assist in securing bids for the construction.
4. Acts as the owner’s representative during
construction.

Nabil Dmaidi 509

Engineering Expense (Continue)

 The cost of engineering surveys is by one of the

following methods:
1. Lump-sum.
2. Salary cost times a multiplier.
3. Cost plus a fixed payment.
4. Percentage of construction.

Nabil Dmaidi 510

Single Lump-sum Payment

 It is used for simple or small projects.

 It applies only when the work to be performed is
well defined & the project has no unusual
requirements.

Nabil Dmaidi 511

Salary times a Multiplier Method

 It is used for complex projects or for projects that

don’t have a well-defined scope of work.
 A multiplier (usually 2-3) is applied to direct
salary cost to compensate for overhead,
contingencies, & profit.

Nabil Dmaidi 512

Cost Plus a Fixed Payment Method

 Used when an engineering design is required to start

before the cost and the scope of work can be accurately
determined.
 Used if the owner wants to accelerate the design process,
analyze special problem, or prepare estimates for alternate
types of construction.
 The fixed fee is 10% (large projects), and 25% (small
projects).

Nabil Dmaidi 513

Percentage of Construction Cost Method

 It is used when the design procedure, construction

method, & type of material are well known.
 The percentage is on sliding scale that decreases
as the construction cost increases.
 It ranges from 5-12% of the anticipated
construction cost.

Nabil Dmaidi 514

Interest During Construction

 The owner pay to the contractor at the end of each

month during the period of construction a
specified percentage of the value of the work
completed during a month, usually 90%.

Nabil Dmaidi 515

Contingencies

 Providing funds to cover any additional costs that

may occur during construction, if the cost of the
project is not known in advance of raising funds to
finance it.

Nabil Dmaidi 516

Example Estimate for Total Cost of an Engineering
Project
Item Estimated cost($)
1. Land & easements 86000
2. Legal expenses 12000
3. Bond expenses 8100
4. Cost of construction 589964(a+b+c+d+e+f)
a. Water wells([email protected]$) 319.875
b. Pump houses(3@4500$) 13500
c. Electric power 107011
lines([email protected]$)
d. Ductile iron pipe([email protected]$) 137231
e. Cast-iron fittings 8667
([email protected]$)
f. 12 in. Gate valve (4@920$) 3680
Total cost of construction 696064
5. Eng. expense(7% of construction 48724
cost)
6. Interest(10 months @8%/year) 696064/2*0.08*10/12
=23202
7. Contingencies(5% of 696064$) 34803
8. Estimated total cost Nabil Dmaidi 802793 517
 [Chapter 25]
Computer Estimating

Nabil Dmaidi 518

Introduction

 To assemble complete estimate, the estimator must

combine knowledge of construction methods & cost
calculations.
 This takes too much time, information, & numerous
calculations, so, it is an ideal task for the computer to
prepare a detailed estimate.
 The estimator should NEVER accept everything that
comes out of the computer as being totally correct.

Nabil Dmaidi 519

Importance of the Estimator

1. The estimator must know the software being

used.
2. The estimator has the capability to judge the
results of the software.
3. The estimator perform “what if” analysis.
4. The estimator manage the exchange of
information to ensure it is correctly entered into
the computer.

Nabil Dmaidi 520

Tasks of Computer Used in Estimating

1. Maintaining master checklists.

2. Maintaining an inventory of subcontractors, vendors, &
suppliers.
3. Maintaining bidding records of competitive bidders.
4. Performing material quantity takeoffs.
5. Storing & retrieving historical cost data.
6. Storing & retrieving labor & equipment productivity.

Nabil Dmaidi 521

 Tasks of Computer Used in Estimating (continue)

7. Establishing codes for labor & equipment resources.

8. Extending prices & summarizing costs at various levels.
9. Distributing overhead & indirect costs.
10. Analyzing risk & assessing contingency for markup.
11. Preparing & delivering the bid or proposal in electronic
form.
12. Sharing information within an office or company.

Nabil Dmaidi 522

Electronic Media

 It is the use of the internet & other electronic media

(CAD & word processing software) to operate drawings
& specifications.
 Intranet is an internet site set up for private use of
company & controls access of information.
 Extranet is an internet set up by a company for shared
use with others.

Nabil Dmaidi 523

Fundamentals of Spreadsheets

 A spreadsheet is an electronic file consisting of

hundreds of columns & rows. The intersection of a
column & a row is called a cell.
 Numerical data, formulas, & calculations can be
entered into cells.

Nabil Dmaidi 524

Advantages of Spreadsheets

1. Practically effective in reducing repetitious arithmetic.

2. They are a duplicator for paper & calculator.
3. They enable the estimator to precisely duplicate the
format & appearance of manual reports that were used
before the computers, since managers are more
comfortable with printouts that look exactly like
handwritten reports they’ve used for many years.

Nabil Dmaidi 525

 Disadvantages of Spreadsheets

1. Only the developer of the spreadsheet knows all the

features that are in the spreadsheet.
2. They may have errors in the logic that no one discovers.
3. Only the developer of a complex sheet can use it.
4. One estimator can make changes to the spreadsheet
without the knowledge of other estimators.
5. Cost items missing in a bid because of the addition of a
line & forgetting to adjust the sum formula to include the
line.

Nabil Dmaidi 526

Management of Data

 Most data is stored on hard disks since vast

amounts of data may be used in computer
estimating, and data must be created, stored,
retrieved, & continually updated.

Nabil Dmaidi 527

Contactors typically categorize costs by the
following cost categories:

1. Labor (L).
2. Material (M).
3. Equipment (E).
4. Subcontractors (S).
 Note that knowing the quantity of earth
excavated is not enough to estimate the cost of
estimation, it’ll also depend on the size of crew
& type of equipment.

Nabil Dmaidi 528

 Labor Resources

 It is estimated by craft rather than by individual people.

 In computer estimating, they are selected from selection
lists.
 There are three methods for costing labor resources:
1. All labor factors.
2. Prepare all combinations
3. Simple historical rate.

Nabil Dmaidi 529

All Labor Factors Costing Method

 Enter all of the burden factors into the

estimating software & let the system compute
labor rates.
 Factors used in the labor calculations fall into
the categories of:
1. Taxes.
2. Fringes.
3. Workmen’s compensation insurance.
4. Overtime.

Nabil Dmaidi 530

Prepare all Combinations Method

 Prepare spreadsheets of all possible combinations

from which companies can select the variations
they need for each particular estimate.
 This method is not preferred.

Nabil Dmaidi 531

Simple Historical Rate Method

 This method is valid only if all jobs are similar.

 It uses the same tax on all labor crafts of previous
year for this year.

Nabil Dmaidi 532

Precision in Labor Costing

 Too much precision in the rate makes little

practical sense.
 Working days & working hours should be rounded
to a whole integer number of days or complete
number of working hours/day (that is usually 8
hours/day).

Nabil Dmaidi 533

Equipment Resources

 The equipment rates can be broken down into

two components:
1. Ownership costs.
2. Operating expenses.

Nabil Dmaidi 534

The technical specifications

(Divisions 0 through 16)

Nabil Dmaidi 535

 Division 0_Bidding and contract documents
 Division 1_General requirements
 Division 2_Sitework
 Division 3_Concrete
 Division 4_Masonry
 Division 5_Metals (none)
 Division 6_Wood and plastics
 Division 7_Thermal and moisture protection
 Division 8_Doors and windows
 Division 9_Finishes
 Division 10_Specialties
 Division 11_Equipment (none)
 Division 12_Furnishings
 Division 13_Specail construction (none)
 Division 14_Conveying systems (none)
 Division 15_Mechanical
 Division 16_Electronical

Nabil Dmaidi 536

Division 0_bidding requirements , contract forms
, and conditions of the contract

Nabil Dmaidi 537

Section 00001 Advertisement for bids

It include the type of project , the office at which

bids will be received , the latest day for
delivery…etc

Nabil Dmaidi 538

Section 0002
Instructions to bidders

Nabil Dmaidi 539

Receipt & Opening of bids
 Bids form included in the contract documents
 Bids will be received by the owner at the time and place set forth in the
advertisement & then at said place
 publicly opened & read aloud
 The owner may reject any bid not suitable

Nabil Dmaidi 540

Bid submission

 Each bid must be submitted in a sealed envelop bearing on the outside

the name of the bidder , his address , the name of the project for which
the bid is submitted , and addressed as specified in the bid form .

Nabil Dmaidi 541

Special bidding documents
 Affidavit of nondiscrimination ,
nonsegregated facilities , noncollusion , and
business relationships .
 Bid bond
 Power of attorney

Nabil Dmaidi 542

Subcontract
 Any person , firm , or other party to whom
it is proposed to award a subcontract under
this contract must be acceptable to the
owner

Nabil Dmaidi 543

Telegraphic modification

 Any bidder may modify his bid by telegraphic or

facsimile communication at any time prior to the
scheduled closing time for receipt of bids
 The telegraphic or facsimile communication
should not reveal bid price , but should provide the
addition or subtraction to the owner until the
sealed bid is opened.

Nabil Dmaidi 544

Withdrawal of bids
 Bids may be withdrawn on written or
telegraphic or facsimile request received
from bidders prior to the time fixed for
opening

Nabil Dmaidi 545

Basis of bid
 The bidder must include all unit cost items
and all alternatives shown on the bid forms ;
failure to comply may be cause for
rejection.

Nabil Dmaidi 546

Qualification of bidder
 The owner may make such investigation to
determine the ability of the bidder to
perform the work, and the bidder shall
furnish to the owner all such information
and data for this purpose as the owner may
request.

Nabil Dmaidi 547

Bid security
 each bid must be accompanied by a certified
check made payable to the owner in the sum
of not less than 5% of the base bid, plus add
alternates if any, or a bond with sufficient
sureties, to be approved by owner.

Nabil Dmaidi 548

Bid default
 if the successful bidder fails or refuses to enter into a
contract as required by the owner or fails to provide the
required bonds and insurance to the owner, within the time
limited, said bidder shall forfeit to the owner the difference
between the low bid of said defaulting bidder and the
amount of the bid of the bidder to whom the contract is
subsequently awarded .

Nabil Dmaidi 549

Time of completion
 Bidder must agree to commence work on or
before a specified date

Nabil Dmaidi 550

Conditions of the work
 Each bidder must inform himself fully of
the conditions relating to the construction of
the project and employment of labor hereon.

Nabil Dmaidi 551

Addenda & interpretations

 No interpretation of the meaning of the plans,

specifications or other contract documents will be
made to any bidder orally.
 And to be given consideration must be received at
least ten days prior to the date fixed for the
opening of bids.

Nabil Dmaidi 552

Power-of- attorney
 The attorney-in- fact who signs bid bonds or
contract bonds must file with each bond a
certified and effectively dated copy of the
power-of- attorney.

Nabil Dmaidi 553

Laws and regulations
 all applicable state laws, municipal
ordinances, and the rules and regulations of
all authorities having jurisdiction over
construction of the project shall apply to the
contract throughout.

Nabil Dmaidi 554

Obligation of bidder
 At the time of the opening of bids, each
bidder will be presumed to have inspected
the site and to have read and to be
thoroughly familiar with the plans and
contract documents (including all addenda).

Nabil Dmaidi 555

Substitutions and product options
 Where material is mentioned in the specifications by trade
name or manufacturers name, the same is not a preference
for said material, but the intention of using said name is to
establish a type or quality of material. Material of other
trade names or of other manufacturers which is equivalent
or better in type or quality shall be submitted for approval
10 days prior to bidding and shall be accompanied by
actual full sized samples.

Nabil Dmaidi 556

Section 00003_ bid form
 Bidders shall note that bids must be made on a specified form. A
mounts of the bids shall be completely filled in, both in figures and in
writing.
 Enclose the bid form in a sealed envelope plainly marked and
addressed

Nabil Dmaidi 557

 Section 00004_ Affidavit off nondiscrimination,
nonsegregated facilities, noncollusion, and
business relationships

 Section 00005_ bid bond

 Section 00006_ contract

Nabil Dmaidi 558

 Section 00007_affidavit

 Section 00008_ performance payment bond

 Section 00009_ statutory bond

 Section00010_ warranty bond

Nabil Dmaidi 559

 Section 00011_ release of liens affidavit

 Section 00012_ certificate of approval

 Section 00013_ general conditions

 Section 00014_suplementary conditions

Nabil Dmaidi 560

 Change Orders

Change Orders are part of every

project.
Designs are not perfect.
Owners insert changes during the
work.
Site conditions are sometimes different
than expected.
Learn how to manage Change Orders.
Nabil Dmaidi 561
 Inproject management, a change order
is a component of the change
management process whereby changes in
the Scope of Work agreed to by the
Owner, Contractor and Architect are
implemented.
Change orders are common to most
projects, and very common with large
projects Nabil Dmaidi 562
 Afterthe original scope (or contract) is
formed, complete with the total price to
be paid and the specific work to be
completed, a client may decide that the
original plans do not best represent his
definition for the finished project.
Accordingly, the client will suggest an
alternate approach.
Nabil Dmaidi 563
- The project's work was incorrectly
estimated
 The customer or project team discovers
obstacles or possible efficiencies that
require them to deviate from the original
plan
 The customer or project team are
insufficient or incapable of completing
their required deliverables
Nabil Dmaidi within budget,564
 andadditional money, time, or resources
must be added to the project .
 During the course of the project, additional
features or options are perceived and
requested.

Nabil Dmaidi 565

A project manager then typically
generates a change order that describes
the new work to be done (or not done in
some cases), and the price to be paid for
this new work. Once this change order is
submitted and approved it generally
serves to alter the original contract such
that the change order now becomes part
of the contract.
Nabil Dmaidi 566
A Change Order is work that is added to
or deleted from the original scope of
work of a contract, which alters the
original contract amount or completion
date.

Nabil Dmaidi 567

 The Change Clause Provides:

 Means by which the owner can adjust plans

and specifications

 Means by which the contractor may

incorporate suggestions

 A outline for organizing and presenting

claims for additional compensation

 Coordination with dispute clause for serious

problems Nabil Dmaidi 568
 Problems Of Change Clauses:

Does it fall within the scope of the project?

Must the change be in writing?

Who has the authority to make the change?

Is the consent of the surety needed?

Is there a resolution available if a price cannot be

agreed upon?

Is the time requirement appropriate?

Nabil Dmaidi 569
 Contract Changes Do More Than Alter The
Scope Of The Work, They:

 Disrupt orderly sequences

Interfere with planned deliveries
Void prior coordination

 Change schedule logic

 Change methods for work not otherwise addressed by

the change

 Cause a contractor to remain mobilized on site longer

than originally planned
Nabil Dmaidi 570
 Continue to add administrative costs resulting from
 Three Distinct Change Order Categories
Are:

1. Owner-acknowledged
– Payment for actual work
– Indirect costs
– Consequential costs

2. Constructive changes
– Defective specs
– Change in method of performance
– Misinterpretation of specs
– Rejection of conforming work
Nabil Dmaidi 571
– Rejection of “or equal” submissions
Three Distinct Change Order Categories
Are:

 3. Consequential changes
– Direct cost of additional changed work
– Interference costs, re-sequence, work,
rework
– Impact costs - delay. extended overhead,
opportunity costs

Nabil Dmaidi 572

Defective Specifications

Cuts and Paste

Silly specifications
Old age
Inconsistencies
Impossibilities

Nabil Dmaidi 573

 Reasons For Issuing Change Orders

 Owner has secured additional financing

 Emergence of unforeseen conditions during

construction

 Material nonconformance with original specifications

 Correct errors or omissions in the original documents

 Changes requested by the owner contractor, or design

professional

Nabil Dmaidi 574

 Information Required On Change
Orders

 Name, Title or Number of the Project

 Date of the Change Order

 Number of Change Order

 Changes Required under this Order

 Change in the Contract Price

 Change in Time of Completion

Nabil Dmaidi 575
Bid Submission Documents

A LATE BID IS
NO BID
Nabil Dmaidi 576
 Bid Submission Documents

THE PROPOSAL
 Constitutes the first part of an “offer and
acceptance”
 Submitted on a proposal form that is
furnished to each bidder
 Permits the owner to more easily compare
the bids that are submitted

Nabil Dmaidi 577

 THE PROPOSAL
Should include the
following information:
1. Name and address of owner
2. Title of project
3. An opening statement
4. Date of proposal
5. Names, addresses, and signatures of
the firm submitting bids
6. Receipt of addenda
7. Alternate bids
8. Time of completion
9. Subcontractor listing
10. Unit prices
Nabil Dmaidi 578
Ethics and Bid Considerations

There is no right way to do a wrong

thing!!!!
Nabil Dmaidi 579
To Withdraw a Bid
A contractor must satisfactorily establish the
following:
– A mistake was made
– Written notice give to agency
– Specify how mistake occurred
– Mistake made bid materially different than
intended
– Mistake was made in filling out the bid and was
not due to an error in judgment or carelessness
in inspecting the site of the work or in reading
the plans and specifications
Nabil Dmaidi 580
 Bid Errors
Bid errors can be divided into two categories:

Errors of fact
&
Errors of judgment

An error of fact is generally excusable:

An error of judgment is not

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Contract Clauses - Frequent
Disputes
Work scope definitions
Supporting & included documents
Design changes
Construction changes
Definition of cost
Price
Cost reporting and control
Schedule reporting and control
Design rework
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Attached Documents
A number of other documents are often
required to be attached to the proposal.

These include:
– Prequalification statements
– Federal Government forms
– Listing of subcontractors
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 Important Steps in Preparing Bid
Proposal
 Analyze the Contract Documents for items
to be included in the bid
 Schedule site trip to investigate for potential
problems
 Order bid bond early
 Schedule estimating properly
 Develop and use uniform estimating
standard
 Do not bid to get job, bid to make $$$
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 Bid Substitutions
A substitution is a suggested change to the
base bid, which has been volunteered by the
bidding firm, not the owner or the design
professional.

 One disadvantage to substitutions is that

there are no comparative prices available.

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 Low Bidder Determination
 Under a lump sum price process a direct
comparison of the base bids is all that is
required

 Under
the unit price proposal system, the
method used is that of “equivalent lump
sum”
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 Opening, Acceptance, &
Documentation of Bids
 PrivateSector - No rigid procedures
 Public Sector - following “inflexible” rules
apply:
– Receipt of sealed bids at the designed time and
place
– Confirmation that all bids are responsive
– Acceptance and logging of name and amount
for all responsive bidders
– Summary of all line and unit price items
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 Bid Alternatives
 Alternates and Substitutions are changes to
the base bid
 Used to compare different products or
methods
 Too many alternatives have a tendency to
increase the chances of bid errors

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 Lump-Sum Proposals
 Proposals under the competitive bidding
system are usually submitted as a Lump-
Sum or Unit-Price Bid
 Lump sum bids used for most building
projects, where the scope and requirements
of the project are well defined
 The Proposal form must provide spaces for
only one amount to be given in words and
figures
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Unit-Price Proposals
 Requested when the scope of the work
cannot be well-defined
 The project consists of a relatively small
number of activities
 Bidders are given estimated quantities and
asked to supply unit-price

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 Quotations Request

 One of the first actions that a general contractor takes

after the decision to bid has been made is to send out
quotations requests to various subcontractor and
material supply firms

 The request should contain the

following information:

 1. The name of the project for which quotations are requested

 2. The place where plans and specifications and other bidding

documents may be examined

 3. How quotations are to be submitted

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 Quotations Request

 4. Any unusual requirements in the

particular branch of the work that the general
contractor is already aware of

 5. Date by which quotations are desired

 6. Whether or not the general contractor

requests the use of a standard quotation
request form

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Reducing Bid Shopping and Bid
Peddling
Methods Of Reducing The Practice Of Bid
Shopping & Bid Peddling

 Owner may require the general contractor to

submit a

list of all subcontractors and major material

suppliers on the bid proposal form

 The use of a bid depository

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 Bid Shopping

 Two practices that cause a lot of ill will within the

construction industry are bid peddling and bid
shopping

 Inpracticing bid shopping, the general contractor

takes the low bid in a branch of the work (which was
used in the preparation of the bid) and goes
“shopping for lower prices”
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 Bid Peddling

 Bid peddling takes place during the biding phase

and bid shopping after the general contract has
been awarded

 The practice of bid peddling involves the

disclosure of the quotations of other bidders
to a favored subcontractor

 The net result of both of these practices, bid

shopping and bid peddling, is to reduce the quality
of the owner’s project
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