PART I

CONSTRUCTIO
N PROJECT
MANAGEMENT
WHAT IS MANAGEMENT?
Management as a Process
It is the process of combining the efforts &
resources of individuals with a common interest to
achieve a desired objective.

Management as a Function
It is the application of authority and the
assumption of the responsibility. It is an art, the art
of handling people.
PLANNING

Planning is an art, and the art of

arranging activities towards a certain
goal. For a good planning, intelligence
and experience are necessary. And for a
plan to be successful, it must be prepared
by those were trained and qualified for
certain period of time.
PLANNING
Four Basic Rules for a Sound Construction Pre-Planning:

1.The construction superintendent should be included in the

consultation at the very start of the of the planning stage.

2. Make a job breakdown into components. This will simplify the

whole program.

3. Prepare a construction plan that will be consulted

constantly.

4. Take advantage of new tools, which have demonstrated in saving

time, money or confusion…, Project Management, Primavera
(software)
PLANNING
For Whom and What are We Planning for?

1. We are planning for the owners of the company

when we plan to achieve a profit by operating at the
minimum expenses, utilizing the available and
immediate resources.

2. We are planning for the employees when we plan

to create or maintain jobs.
PLANNING AND SCHEDULING WITH GANTT CHART

The Gantt chart is a tool used for

planning and scheduling simple projects.
With the chart, the project engineer can
initially schedule project activities, and
to monitor progress over time by
comparing planned progress to actual
progress.
SAMPLE GANTT CHART FOR CONSTRUCTION
GANTT CHART FOR CONSTRUCTION

The advantage of the Gantt chart is its simplicity,

making it very popular. Gantt chart however, fails to reveal
certain relationship among activities that can be crucial to
effective project management. If anyone of the early activities
would have to be delayed, it is because they could not start
until that activity was completed. Some activities may be
delayed without affecting the overall project schedule.
A Gantt chart does not directly reveal this information.
Gantt charts are useful for simple projects where activities are
simultaneously or where a string of sequential activities
involved. On a more complex project planning, which then
gives way to the use of networks called PERT and CPM.
PERT
AND

CPM
What is PERT and what is CPM?

PERT is a Program Evaluation and Review Technique

CPM is the Critical Path Method
PERT was developed as a result of looking for an improved
method of planning and evaluating progress of a large scale research and
development program. It was designed to provide the management a
periodic reporting of current status and an outlook for the future on
meeting approved plans and schedules.
CPM was designed as a tool for planning, scheduling and control
of construction work. Its emphasis was on the work or activities to be
managed. The network diagram defined and focused attention on the job
to be accomplished. The schedule drives the earliest and the latest times
for their start and finish.
What is PERT and what is CPM?

PERT/CPM is a control tool for defining the

parts of construction job and then putting them
together in a network form. It serves as an aid to the
construction manager but it does not make decision
for him does it guarantee good management.
PERT/CPM only serves the project manager to see the
whole picture of the entire job. It encourages periodic
re-evaluation and providing an accurate measure of
progress.
PERT/CPM PROJECT REQUIREMENTS
Today, either of the two techniques can be used with
deterministic or probabilities of time. In all major projects of the
government, PERT and CPM network is a mandatory requirements.

Under Presidential Decree (PD) 1594, Prescribing Policies,

Guidelines, Rules and Regulations for government infrastructure
contracts provides that:

“The program of work shall include, among other things,

estimates of the work items, quantities, cost and a PERT/CPM
network of the project activities…in the preparation of the bidding
documents, the government shall make and estimate of the actual
number of working days required to complete the project through
PERT/CPM analysis of the project activities and corrected for
holidays and weekends.”
PERT/CPM PROJECT REQUIREMENTS
On January 27, 1968, president Ferdinand E. Marcos
issued Memorandum Circular No. 153 which provides that:

“In order that the performance discipline on the field

could be controlled and easy reporting system could be
made to facilitate the monitoring, evaluation, inspection
completion of infrastructure projects, all heads of
departments and chief of bureaus and offices concerned are
hereby required to change the old system of preparing the
work programs of said projects from the Gantt Chart (Bar
Type) to the PERT/CPM network. Strict compliance
herewith is enjoined.”
PERT/CPM PROJECT REQUIREMENTS

With the use of PERT/CPM, the project manager can

easily obtain the following information:

1.The graphical display of project activities

2.An estimate of how long will the project last
3.Determine which activities are the most critical to timely
project completion.
4.Determined how long any activity can be delayed without
lengthening the project
THREE PHASES OF PERT / CPM

1. Planning
is defined as determining the relationship between the work
operation and the sequence in which they are to be performed.
2. Scheduling
is define as the process of translating the arrow diagram into time
table of calendar days. This is done by the date table converting
working days into calendar days which permits the inclusion of
weekends, holidays, weather and other time lost.
3. Controlling & Monitoring
Flexibility and updated re-computations brought about by
changing conditions is the key to a successful network
programming.
CONTROLLING AND MONITORING

Planning Phase
- there are five inputs that can be obtain:
1. A network diagram defining the activities in the
project.
2. The duration of the activities
3. Cost estimates of the activities for monitoring
cost, cash flow requirements
4. Resource estimates
5. Trade indicators (responsibility) for activity
grouping.
CONTROLLING AND MONITORING
Schedule Phase
- there are four output that can be obtain:
1. The schedule of activities in the network showing the following:
a. The Critical Activities
b. The Earliest Start date for each activity
c. The Earliest Finish date for each activity
d. The Latest Start date for each activity
e. The Latest Finish date for each activity
f. The Float which refers to the amount of extra time available for an activity.
2. A Bar Chart or a Time Scaled Network (arrow diagram network for the project).
3. A Resource Analysis showing the number & kind of resources, man power,
equipment and others that are required for each day of the project.
4. A Cash Requirement prediction indicating how much cash to be disbursed for
the job and the amount of money that will be collected as a result of work
accomplishment.
CONTROLLING AND MONITORING

The Control Monitor Phase

- uses actual data which includes:
1. Addition to the project – This refers to the new
activities.
2. Deletion from the project
3. Changes as to duration, description, trade
indicators, cost estimates or resource estimates.
4. Actual starting date.
5. Actual finishing date.
CONTROLLING AND MONITORING

The Output Phase

- consist of the following:
1. Time status report
2. Revised schedules
3. Revised Bar Charts / Arrow Diagram or Network
4. Revised resource analysis
5. Revised cash flow predictions
6. Cost status reports
THREE MAJOR REASONS FOR CONSTRUCTION FAILURE

1. Unbalanced organization due to

lack of planning and scheduling.

2. Lack of financial planning

3. Poor cost control

END OF PRESENTATION
FOR PART I
 PART II

APPLICATION
On actual
construction
PERIOD OF ACTION
ON PROCUMENT
ACTIVITIES
 PERIOD OF ACTION ON PROCUREMENT ACTIVITIES
      MAXIMUM PERIODS
Consulting
Stage Activities Deadline Goods Civil Works
Services
For ABC costing For ABC costing
         
50M and below above 50M
1 Advertisement/Posting of IAEB   7 cd 7 cd 7 cd 7 cd
Within 7cd from the last day
2 Letter of Intent n/a 7 cd 7 cd 7 cd
of posting
Eligibility Check for civil works
Refer to
3 and consulting services/Short   3 cd 3 cd 20 cd
stage 6
listing for consulting services 30 36 50 60
Issuance and availability of Available for at least 7cd cd cd cd cd
4        
bidding documents from the date of issuance
12 cd before the deadline of
5 Pre-bid Conference 1 cd 1 cd 1 cd 1 cd
submission of bids
10 cd before deadline of
  Request for clarification        
submission of bids
7 cd before deadline of
  Suplemental/Bid Bulletin        
submission of bids
1 cd (includes
6 Submission and Opening of Bids   1 cd 1 cd 1 cd
eligibilty check)
21 cd + 2 cd for
7 Bid Evaluation   7 cd 5 cd 7 cd approval of
ranking
8 Notification for Negotiation   3 cd
n/a
9 Negotiation   10 cd
10 Post-Qualification   7 cd 7 cd 7 cd 7 cd
Approval of Resolution/Issuance
11   7 cd 4 cd 7 cd 7 cd
of Notice of Award
12 Contract Preparation and Signing   10 cd 10 cd 10 cd 10 cd
Approval of Contract by Higher
13   15 cd 5 cd 15 cd 15 cd
Authority
14 Issuance of Notice to Proceed   3 cd 2 cd 3 cd 3 cd
Total Maximum Periods   80 cd 70 cd 100 cd 139 cd
PROJECT TITLE:
CONSTRUCTION OF FOUR (4)
STOREY BUILDING OF
ARAULLO HIGH SCHOOL
(PHASE I)
LOCATION:
Taft cor. U.N. Avenue, Ermita, Manila
CONTRACT AMOUNT:
SEVENTY THREE MILLION FOUR HUNDRED THIRTY NINE
THOUSAND THREE HUNDRED PESOS (P 73,439,300.00)
 Required
documents
SCOPE OF WORK
DETAILED COST ESTIMATE
PROGRAM OF WORK
APPROVED BUDGET FOR THE
CONTRACT
 PROJECT
SCHEDULING
Starting Date

Date Finish
 PROJECT
PLANNING
 PLANNING SCHEDULE
DURATION
TASK DESCRIPTION
(DAYS)
1-2 MOBILIZATION 3
2-3 EARTHWORKS 15
3-5 STRUCTURAL STEELWORK 123
3-4 CONCRETE AND MASONRY WORKS 125
3-6 FABRICATION WORKS 55
5-4 DUMMY 0
4-9 PLUMBING WORKS 72
4-10 ELECTRICAL WORKS 72
10-11 MECHANICAL WORKS 12
11-13 DUMMY 0
9-12 FIRE PROTECTION SYSTEM 29
6-7 CARPENTRY WORKS 64
7-8 ROOFING WORK 20
8-12 DUMMY 0
12-13 SURFACE FINISHING 22
13-14 DEMOBILZATION 4
 PERT / CPM

123 72 12
5 10 11
141 143 215 254 227 266

3 15 72 29 22 4
1 2 3 125 4 9 12 13 14
215 215 244 244 266 266 270 270
0 0 3 3 18 18 143 143

55

6 64 7 55 8
73 160 137 224 157 244

1-2-3-5-4-9-12-13-14 268
1-2-3-4-10-11-13-14==270
1-2-3-5-4-10-11-13-14
1-2-3-6-7-8-12-13-14
1-2-3-4-9-12-13-14 =231
=183
229
days
days
days
days CRITICAL PATH
 PERT / CPM
PROJECT ENDED
AHEAD OF 1.5
PROJECT STARTED MONTHS (MAY
LATER THAN 2009)
SCHEDULED DATE
(AUGUST 2008 72 12
123 5 10 11
141 143 215 254 227 266

3 15 72 29 22 4
1 2 3 125 4 9 12 13 14
215 215 244 244 266 266 270 270
0 0 3 3 18 18 143 143

55

6 64 7 55 8
73 160 137 224 157 244

1-2-3-5-4-9-12-13-14 268
1-2-3-4-10-11-13-14==270
1-2-3-5-4-10-11-13-14
1-2-3-6-7-8-12-13-14
1-2-3-4-9-12-13-14 =231
=183
229
days
days
days
days CRITICAL PATH BUT?? ?
Problem Encountered during Implementation
The construction
was started 3 Base from RA 9184
months after the
Notice to Proceed

Work Suspension Order

Contract Date: July 25, 2008

Notice to Proceed: July 31, 2008 123 5

141 143
72
10
215 254
12 11
227 266
?
3 15 72 29 22 4
1 2 3 125 4 9 12 13 14
215 215 244 244 266 266 270 270
0 0 3 3 18 18 143 143

55

6 64 7 55 8
73 160 137 224 157 244
Implementing Rules and Regulations of Republic Act No. 9184
ANNEX “E”
CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT
OF INFRASTRUCTURE PROJECT
9. SUSPENSION OF WORK
1. The procuring entity shall have the authority to suspend the work wholly or
partly by written order for such period as may be deemed necessary, due to
force majeure or any fortuitous events or for failure on the part of the
contractor to correct bad conditions which are unsafe for workers or for the
general public, to carry out valid orders given by the procuring entity or to
perform m any provision of the contract, or due to adjustment of plans to suit
field conditions as found necessary during construction. The contractor shall
immediately comply with such order to suspend the work wholly or partly.
2. In case of total suspension, or suspension of activities along the critical path,
which is not due to any fault of the contractor, the elapsed time between the
effective order of the suspending operation and the order to resume work shall
be allowed the contractor by adjusting the contract time accordingly.
Work Suspension Order
Solution on the Problem
Three (3) months
delayed

Base from RA 9184

Work Resumption Order

123 123 5 5
141 143141 143
72 72
10 10 12
215 254215 254
12 11 11
227 266227 266
?
3 3 15 15 72 72
1 1 2 2 3 3 125 125 4 4 9 9 29 29 12 12 22 22 13 13 4 4 14 14
215 215215 215 244 244244 244 266 266266 266 270 270270 270
0 0 0 0 3 3 3 3 18 18 18 18 143 143143 143

55 55

6 6 64 64 7 7 55 55 8 8
73 160 73 160 137 224137 224 157 244157 244
Implementing Rules and Regulations of Republic Act No. 9184
ANNEX “E”
CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT
OF INFRASTRUCTURE PROJECT
9. EXTENSION OF CONTRACT TIME
3. Extension on contract time may be granted only when the affected activities
fall within the critical path of the PERT/CPM network.
4. …Shortage of construction materials, general labor strikes, and peace and
order problems that disrupt construction operations though no fault on the
contractor may be considered as additional grounds for extension of contract
time provided they are publicly felt and certified by appropriate government
agencies such as DTI, DOLE, DILG, and DNA, among others. The written
consent of bondsmen must be attached to any request of the contractor for
extension of contract time and submitted to the procuring entity for
consideration and the validity of the performance security shall be
correspondingly extended.
Work Resumption Order
Solution on the Problem
Three (3) months
delayed Construction Work will END on August, 2009
1-1/2 months elapsed

Base from RA 9184

Work Resumption Order

123 72 12
5 10 11
141 143 215 254 227 266

3 15 72 29 22 4
1 2 3 125 4 9 12 13 14
215 215 244 244 266 266 270 270
0 0 3 3 18 18 143 143

55

6 64 7 55 8
73 160 137 224 157 244