Construction Engineering lecture 1.pptx civil engineering

Lecture 01
Engr. Sajjad Ali,
Director, Planning &
Development
University of
Engineering and
Technology, Peshawar,
Introduction to Project Management

Topics Covered in this lecture;
• Project management Overview
• Processes
• Project Life Cycle (PLC)
• Value engineering
• Normal track versus fast-track construction
• Pre-Qualification process
• Bidding process

Some Quotes on Project Management
• Trying to manage a project without project management is like trying to play a football
game without a game plan - K. Tate
• Plans are only good intentions unless they immediately degenerate into hard work -
Peter Drucker
• A project is complete when it starts working for you, rather than you are working for it.
• Good judgment comes from experience, and experience comes from bad judgment. –
Fred Brooks

• An temporary endeavor to create a Unique Product or Service.
• A unique one time effort bound by cost, time and resources/technical performance
and has defined objectives to satisfy the customer needs.
• Project is an undertaking having definite objectives, and specific beginning and ending
points, limited budgets, defined scope.
• Sum of certain activities and tasks required to be performed in a specified period of
time with human and non-human resources for specified objectives.
What is a Project?

What is a Project?
• Project is a one time non-routine opportunity to develop a new product.
• To be completed with in
• Allocated budget.
• Scheduled Time.
• Approved Technical Performance.
• Approved and agreed Scope of Work.

The process of Planning, Organizing, Staffing, controlling and leading.
Project management:
The art of Directing and coordinating the human and non human Resources throughout the life
of project by using modern Management techniques to achieve pre-determined objectives of
scope, cost, time, quality and participants satisfaction.
( Project Management Institute America)
• Project management includes:
- Project Appraisal
( Before Commencement of Project PC-I, PC-II).
- Project monitoring.
( During Execution of the Projects PC-III)
- Project Evaluation
( After Completion of the projects. PC-IV,PC-V)

8 of 54
Advantages of Using Formal Project Management
• Better control of financial, physical, and human resources.
• Improved customer relations.
• Shorter development times.
• Lower costs.
• Higher quality and increased reliability.
• Higher profit margins.
• Improved productivity.
• Better internal coordination.
• Higher worker morale (less stress).

• Construction Industry Divisions
• The major divisions of the construction industry consist of building construction
(also called “vertical construction”) and heavy construction (also called
“horizontal construction”).

Modern building construction
project.

Heavy construction project—Kennedy Space Center launch complex.
(U.S. Air Force photograph)

• Pre-Project Phase:
• An idea or perceived need or desire to improve
• Project delivery system to be used
• Type of contract to be used with the contractor.
• The owner may engage a professional engineer, an architect or a project manager during this pre-
project phase to advise on these important decisions.
• Planning and design phase
• It is convenient to divide this phase into three stages.
• Stage-I: The goal of the first stage is to define the project’s objectives, consider alternative ways to attain
those objectives
• Stage-II: Develop schematic diagrams showing the relationships among the various project components,
• Stage-III: Detailed design of the structural, electrical and other systems

• Contractor selection phase
• Client: Procurement and tendering methods to be used.
• Contractor:
• Study of various methods and techniques/equipment used for and during the project.
• To workout the schedule of the project and all activities.
• A priced proposal will be prepared, including the direct costs of labor, materials, plant and
subcontractors, various overhead charges and a sufficient added amount for profit.
• The last step in this phase is the submittal, opening and evaluation of tenders, the
selection of the successful contractor and the finalization of the construction
contract.

• Project mobilization phase
• Various bonds, licenses and insurances must be secured.
• A detailed program for the construction activities must be prepared.
• The cost estimate must be converted to a project budget and the system for tracking actual
project costs must be established.
• The worksite must be organized, with provisions for temporary buildings and services, access
and delivery, storage areas and site security.
• The process of obtaining materials and equipment to be incorporated into the project must be
initiated and arrangements for labor, the other essential resource, must be organized.
• With the completion of this phase, it is finally time to begin the actual field construction.

• Project operations phase
• Three majors areas are looked into by the contractors
1. Monitoring and control ( Five aspects )
• Time Management
• Cost management
• Quality Management
• Work safety
• Environmental issues
2. Resource Management
3. Documentation and Communication
• Project closeout and termination phase:
• Finally, as the project is near completion, a number of special activities must take place before the contractor’s
responsibilities can be considered complete.
• testing, final verification and acceptance etc
• closing the construction office and terminating the staff’s employment.

For major projects, steps in the project development process include
the following:
• Recognizing the need for the project.
• Determining the technical and financial feasibility of the project.
• Preparing detailed plans, specifications, and cost estimates for the project.
• Obtaining approval from regulatory agencies.

• Project Development and Contract Procedures
• The major steps in the construction contracting process include bid solicitation,
bid preparation, bid submission, contract award, and contract administration.

1. Construction employing
owner construction
forces.
2. Owner-managed construction.
[Either
(a) or (b) or both may be employed.]
• Many large industrial organizations, as well as a number of governmental agencies,
possess
their own construction forces.
• Although these forces are utilized primarily for repair, maintenance, and alteration
work, they are often capable of undertaking new construction projects

3. Construction by a general
contractor.
3. Construction by a general contractor operating under a prime contract
is probably the most common method of having a facility constructed

4. Design and Build:
4. Construction employing a design/build firm.
• Under the design/build or turnkey construction concept an owner contracts with a firm to
both design and build a facility meeting certain specified (usually, performance oriented)
requirements.
• Such contracts are frequently utilized by construction firms that specialize in a particular
type of
construction and possess standard designs which they modify to suit the owner's needs.

4. Design and Build:
4. Construction employing a design/build firm.
• Since the same organization is both designing and building the facility, coordination
problems are minimized and construction can begin before completion of final design.
• In this case, the construction contract is normally on a cost-reimbursement basis. This
type of construction is referred to as fast-track.

5. Construction utilizing a construction management
contract.
Construction Management contracts:
• A professional construction manager (CM) acts as the owner's agent to direct both the
design and construction of a facility.
• Three separate contracts are awarded by the owner for design, construction, and
construction management of the project.

Design Bid Build vs Design & Build
Advantages of Design and
Build:
-Single point of Responsibility
-Price certainty
-Speed and high progress
-Effective Cost control
-Build ability/Constructability.
-Less claims
Disadvantages:
-Poor quality of design
-Additional fee for design revision
and improvements.
-Lack of flexibility in the contract

Value Engineering (VE) or Value Analysis is a methodology by which we try to find substitutes for a product or
an operation.
• The concept of value engineering originated during the Second World War.
• It was developed by the General Electric Corporations (GEC).
• Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI).
• This methodology is widely used in business re-engineering, government projects, automakers, transportation
and distribution, industrial equipment, construction, assembling and machining processes, health care and
environmental engineering, and many others.
• Value engineering process calls for a deep study of a product and the purpose for which it is used, such as, the
raw materials used; the processes of transformation; the equipment needed, and many others.
• It also questions whether what is being used is the most appropriate and economical. This applies to all
aspects of the product.
Value Engineering

• Simplification of processes reduces the cost of manufacturing. Every piece of material and the process
should add value to the product so as to render the best performance. Thus, there is an opportunity at every
stage of the manufacturing and delivery process to find alternatives which will increase the functionality or
reduce cost in terms of material, process, and time.
Value Engineering

VE involves providing the Owner with options
that may decrease or increase the cost of the
project, but at the end of the day “improves the
overall value” of the end product which is the
ultimate goal of the value engineering exercise.
Value Engineering

• Value Engineering in organizations helps to identify:
• The problem or situation that needs to be changed/improved
• All that is good about the existing situation
• The improvements required in the situation
• The functions to be performed
• The ways of performing each function
• The best ways among the selected functions
• The steps to be followed to implement the function
• It should be remembered that we are not seeking a cost reduction sacrificing quality. It has
been found that there will be an improvement in quality when systematic value analysis
principles are employed.
Value Engineering

• Russian liquid-fuel rocket motors are intentionally designed to permit ugly (though leak-free) welding.
This reduces costs by eliminating grinding and finishing operations that do not help the motor function
better.
• Some Japanese disk brakes have parts tolerance to three millimeters, an easy-to-meet precision. When
combined with crude statistical process controls, this assures that less than one in a million parts will fail
to fit.
• Many vehicle manufacturers have active programs to reduce the numbers and types of fasteners in their
product, to reduce inventory, tooling and assembly costs.
Examples
of
Value
Engineering
Value Engineering

• In Japan (the land where manufacturing engineers are most valued), it is a standard process to design
printed circuit boards of inexpensive phenolic resin and paper, and reduce the number of copper layers
to one or two to lower costs without harming specifications.
Examples
of
Value
Engineering
Value Engineering

• An example of this is a hospital project outside Denver. The project budget began at $50 million. During
schematic design, the owner chose to benchmark other newly completed hospital facilities in the
Denver area and found deficiencies in his project's space program. To maintain the hospital's
competitive edge, management chose to increase the project's scope and budget. At the completion of
schematic design, the budget was increased by almost 10% to cover these changes. At the end of
design development, however, the project's budget was over by $2.6 million. The next obvious move
was value engineering. Unfortunately, it was too late.
• Over the course of several weeks, the team (including the owner) evaluated ways to reduce cost.
Everything became fair game, and no stone was left unturned. The contractor did a remarkable job of
disassembling the project and putting it back together, using the same square footage while removing
more than $2 million from the job.
Examples
of
Value
Engineering
Value Engineering

• Determining the best design alternatives for Projects.
• Reduction of cost on existing Projects.
• Improving quality, increase reliability and availability, and customer satisfaction.
• Enhancing organizational performance.
• Improving the work scheduling
• Reduction of risks
Value Engineering

• The value engineering workshop has five key steps:
• The project team seeks to gather information about the project thus far including important details about
the owners’ objectives, key criteria, and definition of value.
• Speculation: The team studies the data and brainstorms as many ways as possible to reduce initial or
lifecycle cost while still maximizing function.
• Evaluation: The team evaluates ideas produced during brainstorming. Some ideas become part of the
final solution
Value Engineering

• Development: Many of the ideas that passed the evaluation phase are further developed into workable
proposals. Each recommendation will be accompanied by a short narrative with a list of the positive and
negative aspects of each proposal along with cost comparisons.
• Presentation: The team makes a formal written presentation of their findings accompanied with an oral
presentation to clients, users, and designers. In this final stage, the client can determine which value
management proposals will be incorporated into the project in order to reduce costs and increase overall
value. -
Value Engineering

• On a ‘traditional’ construction project, the design tends to be completed before a price is sought
from contractors. This minimizes the client’s risk, as the price can be fixed, and significant variations to the
scope or nature of the works should not be necessary. However, this can mean that the project is relatively
slow to complete.
• On some projects, the client may priorities time above cost, needing completion of the works as soon as is
reasonable.
• This might be the case for example where there is a fixed deadline (such as the start of a school term), where
the client's cash flow is reliant on income generated by the completed project, where there are risks of
significant cost changes (on very long projects), where the project is financed by debt, or for emergency works.
Fast Tracking

• Fast-track construction is a scheduling technique that can be used to reduce the overall duration of projects by
overlapping tasks that on a traditional contract would not be commenced until the previous task was
completed. The greatest time saving is often achieved by overlapping the design and construction phases.
Fast Tracking

• This is possible by progressively freezing the design an element at a time and then constructing
completed elements whilst the design of the rest of the development continues.
• For example, it may be possible to determine a piling layout and begin construction whilst the design of
above ground works continues.
• Fast-track construction is typically suited to standard building types with repetitive elements and straight
forward construction processes and is most commonly associated with management
contracting and construction management forms of contacting.
Fast Tracking

• It is likely that fast-track construction will be more expensive than a similar traditional contract. Whilst the
same number of tasks need to be performed, they are condensed into a shorter period, and so are likely to
require more resources.
• The risks associated with fast-track construction are also likely to be higher, increasing with the extent to
which
tasks overlap and the number of tasks that are performed concurrently.
• In addition, the client will not know the exact cost of the project when they make the decision to proceed,
as prices will not have been obtained for all the packages. As a result, they may wish to allocate a
higher contingency to the project.
• Design quality can also suffer with fast-tracking as the design process may be compressed, there is
no opportunity to revisit decisions, and materials and components may be selected simply for speed.
Fast Tracking

• Fast-track construction should only be considered by experienced clients with experienced project teams. If
a single element goes wrong, the entire project sequence can unravel, collaborative working practices can
evaporate and the potential for misunderstandings and adversarial behavior can increase dramatically. Any
time that might have been saved can be lost and delays can compound one another.
Fast Tracking

What is PPRA?
o The Public Procurement Regulatory Authority is an autonomous body endowed with the
responsibility of prescribing regulations and procedures for public procurements by Federal
Government owned public sector organizations with a view to improve governance,
management, transparency, accountability and quality of public procurement of goods,
works and services.
o It is also endowed with the responsibility of monitoring procurement by public sector
agencies/organizations and has been delegated necessary powers under the Public
Procurement Regulatory Authority Ordinance 2002.

• KPPRA: Khyber Pakhtunkhwa Public Procurement Regulatory Authority
• SPPRA: Sindh Public Procurement Regulatory Authority
• BPPRA: Balochistan Public Procurement Regulatory Authority
• PPRA: Punjab Procurement Regulatory Authority
At Provincial Level:

Introduction
Tender:
• To invite bids for a project
• Tender usually refers to the process whereby governments and financial
institutions invite bids for large projects that must be submitted within a finite
deadline.
Bid: Offer (a certain price) for something

Introduction
General Tendering Process

NOTE: The numbering of each heading and subheading is according to the original PPRA 2004 document
(1)Procuring agencies shall formulate precise and unambiguous bidding documents
that shall be made available to the bidders immediately after the publication of the invitation to
bid.
(2)For competitive bidding, whether open or limited, the bidding documents shall include
the following, namely:-
(a) invitation to bid;
(b) instructions to bidders;
(c) form of bid;
(d) form of contract;
(e) general or special conditions of contract; (explained in coming slides)
(f) specifications and drawings or performance criteria (where applicable);
(g) list of goods or bill of quantities (where applicable);

(2) For competitive bidding, whether open or limited, the bidding documents shall include the
following, namely:- (Cont.)
(h) delivery time or completion schedule;
(i) qualification criteria (where applicable);
(j) bid evaluation criteria;
(k) format of all securities required (where applicable);
(l)details of standards (if any) that are to be used in assessing the quality of goods, works
or services specified; and
(m) any other detail not inconsistent with these rules that the procuring agency may deem
necessary.

(e) General or Special conditions of contract:

a) Single stage – one envelope procedure.
b) Single stage – two envelope procedure.
c) Two stage bidding procedure.
d) Two stage - two envelope bidding procedure.

Document Title: STANDARD PROCEDURE FOR PRE-QUALIFICATION OF
CONSTRUCTORS
https://www.pec.org.pk/downloads/PEC_Bidding_Docs/Std%20Procedure%20for%20pre-
qualification%20of%20constructors.pdf

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