PROJECT PLANNING

• Form of operational planning whereby the consecutive steps to implement the project activities
are carefully mapped out, based on an analysis of relevant information and linked to the project
in which the project takes place and to which it should contribute
• Establishing scope
• Aims & objectives of a project
• Project performance
• The roles and responsibilities of those involved
• Time (milestone date—target date)
• Cost estimates

IMPORTANCE OF PROJECT PLANNING

• Planning helps to minimize the cost by option optimum utilization of available resources
• Planning reduces irrational approaches, duplication of works and inter departmental conflicts
• Planning encourages innovation and creativity among the construction managers
• Planning sets realistic time frames to assign resources appropriately and manage quality to
decrease costly errors

MANAGEMENT FUNCTIONS: (POSD2C2) - 7

1) Planning
2) Organizing
3) Staffing
4) Directing
5) Controlling
6) Coordination
7) Decision-making

RESOURCES: (10 M’s)

1) Manpower (employee/personnel)
2) Machines (equipment)
3) Materials
4) Money capital/ marketing
5) Management of information (project communication)
6) Management of decisions & orders (labour directing and work request)
7) Mother nature (environment)
8) Minutes (time)
9) Methods
10) Marketing

ELEMENTS OF A PROJECT

• Output
- Objectives/scope—terms of reference; purpose, service performance, specification
• Time/Duration
• Resources
- Manpower, facility, etc.
PROJECT LIFE CYCLE

DEFINE > PLAN > ORGANIZE > EXECUTE > CLOSE-OUT

• Define—feasibility phase; risk assessment

• Plan—planning phase; estimates, budgeting
• Organize—organizing phase; resources, tools, reviews
• Execute—implementation phase; activities, monitoring, costs, progress, controlling, quality
• Close-out—completion phase

DEFINITION OF PROJECT PLANNING DEVELOPMENT

• Deals with planning that is necessary prior starting network marketing in a product, such
planning should facilitate the marketing by establishing:
- Time for delivery materials
- Types, quantities, duration of resources needs
- Classification and number of manpower needs
- The extent to which the financial aid…
- Time required to complete product

SUB-ACTIVITIES UNDER PROJECT PLANNING AND DEVELOPMENT

• Identify project
• Use of critical path method
• Gantt chart
• Conducting a crash program
• Determining minimum cost of a product
• Financing the project
• Project control
• Project suspension

Tender
Ø Process of competitive bidding based on scope of works

OBJECTIVE

Ø Achieve value for money

Factors

Ø Budget
Ø Economic Climate
Ø Program
Ø Resources
Ø Quality of Documentation

Tender Process

1) Pre-tender
2) Tender
3) Evaluation
 4) Award and Contract

Conditions of Contract

Ø Define the terms under which the work is to be carried out.

Ø The relationship between the employer and the contractor, the powers of engineer and the terms
of payment

Form of Tender

Ø Standard letter of offer by the contractor to execute the works. It is prepared by the engineer
and signed by the contractor.

Form of Agreement

Ø Evidences the agreement of the employer to pay the price indicated in the contractor’s tender
and the contractor’s agreement to undertake the works in accordance with the tender document.
Ø Between contractor and employer (contractor)

Form of Bond

Ø It is signed by the contractor and sub-contractor evidencing to pay a sum of money to the
employer in the event of the contractor’s default.
Ø It is provided by a third party often by a bank or an insurance company to the contractor.
Ø If the contractor does not complete the work according to the specifications he pays
money(bond) to the employer
Ø Performance Bond, Payment Bond, Guarantee Bond

Tender

Call Tender

Ø Special procedure for generating competing offers from different bidders looking to obtain an
award of Business activity in works, supply, service or contracts.
Ø (Procesdures / Instructions )

Tender

Ø Offer which incorporates the sum of money, time and other conditions required to carry out the
contract obligations.

Tender Addendums

Ø Describes alternation, additions and removal of the scope of a contract.

Close Tender

Ø Elements of tender process and Auction Process.

Tender Evaluation
 Ø Submission made by a prospective supplier in response to an invitation to tender.

Major Issuers of Construction Contract (UTACDEA) 7

1) UAP – United Architects of the Phiippines

2) TFIDIC – The International Federation of Consulting Engineers.
3) AIA – American Institute of Architects
4) CMAA – Construction Management Association of America
5) DBIA- Design-Build Institute of America
6) EJCDC- Engineers Joint Contract Document Committee.
7) AGC – Associated General Contractors of America

UAP DOCUMENT 301 – General Conditions

1) Establishes the relationship between

o Architect and the Client
o Client and the Contractor
o Contractor and Architect

5 copies of drawing (COFOS)

Ø Contractor
Ø Office of the Building Official
Ø Fire Department
Ø Owner
Ø Site

Temporary Facilities

1 Office = Bedroom of Architect

2 Quarters
3 Warehouse
4 Access
5 Enclosure
6 Storage
7 Trial usage

(FIDIC) The International Federation of Consulting Engineers

Green Book – Straight Forward, quick or cheap project

Ø use on engineering and building works of relatively small capital value or where the construction
time is short.
Ø Also for simple and repetitive work
Red book- Employer Design (Traditional Design)

Ø recommended form of contract for building or engineering works where the employer
has been responsible for nearly all the design.
Pink Book – Employer Design (Multilateral Development Banks providing finance.)

Ø Funded by MBD and designed by employer (variant of red book)

Yellow Book – Contractor Design (Traditional Project)

Silver Project - EPC/ Turnkey Project

Gold Book- Design, Build, operate project

AIA ( AMERICAN INSTITUTE OF ARCHITECTS CONTRACTS

A101 -2007 – Standard form of Agreement between owner and contractor where the basis of payment
is a stipulated sum

A102-2007 - Standard form of Agreement between owner and contractor where the basis of payment is
the cost of work plus a fee with a Guaranteed Maximum Price

A102 2007 - Standard form of Agreement between owner and contractor where the basis of payment is
the cost of work plus a fee without a Guaranteed Maximum Price

A105 2007 - Standard form of Agreement between owner and contractor where the basis of payment is
Residential or Small Commercial Project

A107 2007 - Standard form of Agreement between owner and contractor where the basis of payment is
project of Limited scope.

AIA INTEGRATED PROJECT DELIVERY (IPD) CONTRACTS

A195 -2008 – Standard form of Agreement between owner and contractor FOR IPD

A295 -2008 – General Conditions of the Contract FOR IPD

B295 -2008 – Standard form of Agreement between owner and architect FOR IPD

C191 -2009 – Standard form of Multi-party Agreement between owner and contractor FOR IPD

C195 -2008 – Standard form of Single Purpose Entity Agreement between owner and contractor FOR
IPD
CMAA CONTRACTS

Ø CMAA Doc. GMP-1 –Standard Form between owner and contractor where a Guarantee
Maximum Price is provided.
Ø CMAA Document A-2 Standard Form of Contract between owner and CM
Ø CMAA Document A-3 – General Conditions to the standard owner –cm contract
Ø CMAA Document A-4 – contract between owner and designer
Ø CMAA Document GMP-2 – contract between CM and contractor
Ø CMAA Document GMP-3 – General Conditions FPR gmp-z contracts

CONCENSUS DOCS CONTRACTS

Ø CONCENSUSDOCS 200 – Standard Agreement and Gen Conditions beween owner and
contractor (LUMP SUM)
Ø CONCENSUSDOCS 200.1 – Potentially Time and Price Impacted Materials
Ø CONCENSUSDOCS 300 – Tri-party agreement (owner, contractor, design consultant)
Ø CONCENSUSDOCS 400– owner and designer
Ø CONCENSUSDOCS 500– owner and Construction Manager

EJCDC (ENGINEERS JOINT CONTRACT DOCUMENTS COMMITTEE)

Ø C SERIES – Construction Related Documents

Ø E SERIES- Engineer Documents and Engineer Sub-Consultant Docs
Ø R series- Environmental Remediation Documents
Ø P Series- Procurement Docs
Ø D series – Design Build Series
Ø E-562- Agreement between Engineer and Sub Consultant

TYPES OF CONTRACTS (12)

1 Letter of Intent (Short term of contract)

2 Cost-Plus (Major Revamping of existing facilities, used only when client has sufficient staff)
3 Cost-Plus with Guaranteed Maximum Price (GMP) (Maximum price is established)
4 Cost-Plus with Guaranteed Maximum Price (GMP) and Incentive (Client desires time fast
schedule)
5 Cost-Plus with Guaranteed Maximum Price (GMP) and Provision for Escalation (Semi
Industrialized Countries)
6 Bonus/Penalty, time and completion (Usually applied to lump sum contracts when completion is
absolute necessity)
7 Lump sum based on definitive specifications
8 Lump sum based on preliminary specifications
9 Unit Price of Contracts, flat rate
10 Unit Price of Contracts, sliding rate
11 Convertible Contracts
12 Time and Materials
Joint venture Agreement

Ø Two contractors joining in a specific project

Turnkey

Ø Design and build